Now we have to work to fire up local economies: Beckie Hart

It has no doubt been a difficult few years for businesses across the UK. High inflation, coupled with the residual impact of the Covid-19 pandemic, and new challenges brought about by international conflicts, have left their mark on the UK economy.

According to the OECD’s latest forecast, the UK economy will perform the worst amongst G7 countries in 2025 – with growth predicted to hit just 1%. Businesses must work together with politicians – on both local and national levels, to boost those prospects. Because firing up local economies is an important building block in the UK’s growth story something which we highlighted in our Mayoral manifestos.

UK growth is hampered in part by staff shortages and painful price rises. We need to press ahead with decisive economic priorities – the ones that will make a real difference to people and businesses across Yorkshire and the Humber. It’s time to get the UK economy, and importantly, the local economies within, firing once again.

The Government, and incoming mayors, must put delivering jobs, opportunity and prosperity at the top of their agenda.

To deliver sustainable and inclusive growth, prioritising skills development and retention will be crucial. Recent Office for National Statistics (ONS) labour market figures tell us that unemployment is rising and inactivity persists – while there is a

heightened number of jobs that employers cannot fill.

To ease the pressure on firms across our region, we must improve access to training – in particular, reforming the failed apprenticeship levy and providing more flexibility to employers. These steps will help ensure that companies have the staff needed to fulfil their growth ambitions.

Equally, we have to support regional innovation – zeroing in on some of the UK’s high growth sectors, including green industries, health & med tech, advanced manufacturing, creative industries and digital technologies, and promoting our industrial strengths, of which we have many, on the international stage to attract further investment.

And that support has to be spread across businesses of all sizes. SMEs form a key part of the UK economy.

But many of them are held back by barriers that block the commercialisation of Research & Development. Removing those hurdles will help SMEs break through the growth ceiling, adding to the UK’s economy and prosperity.

We encourage all our local politicians to work in tandem with regional business leaders to seize the opportunities on offer to boost UK growth. Listening to each other, identifying shared problems, and implementing shared solutions, will help to

improve the UK’s economic trajectory and living standards for people across Yorkshire and the Humber. At the CBI, we’ll continue to convene business leaders and politicians – to facilitate just that.

By

Beckie Hart Regional Director, Yorkshire & Humber, CBI