CBI still has an important role to play as we look to address devastating allegations: Beckie Hart

Over the past two weeks we’ve seen February’s GDP figures, which showed no overall growth in the economy. And the latest labour market statistics, which show a market continuing to soften.

Vacancies are falling and respondents cite economic pressures as a factor in holding back on their recruitment.

Real wage growth is in negative territory too – down nearly three per cent on the quarter.

All of these statistics are bearing the brunt of the continuing high inflation – which we now know is staying stubbornly in the double digits (10.1 per cent, according to the newly released figures).

The strength in food price inflation is having a big impact on people’s pockets in communities right across the country.

And we can see the effects of it here in Yorkshire and the Humber.

When you add high prices to wages that can’t keep up with them, there’s no doubt it will continue to be a tough year for many households.

And it means both households and businesses will be concerned about what this means for interest rates too.

The CBI’s economists believe it’s plausible the Bank of England will raise interest rates once more in May.

There’s clearly some resilience in economic activity, so the picture on inflation is starting to look less threatening. But domestic price pressures could force their hand. Nevertheless, we could be close to the peak of this rate-tightening cycle. And with lower energy prices, our economists expect inflation to fall over the rest of the year.

Yet we still need to find more growth to put these economic challenges behind us.

It’s why the pro-business measures we saw in the Spring Budget, and the government’s “Green Day” that followed it, were so important. Both gave us hope that politicians were moving on from focusing on stability to building momentum around growth. And both contained measures our policy and economics teams have worked hard on for months, if not years.

Measures like full expensing, which will free up cash for firms making it easier – and quicker – to turn investment plans into action. And childcare reform and workplace health support, which will go some way to answering the UK’s challenge of economic inactivity – still at a record high according to the labour market statistics.

And in turn, that will help tackle the UK’s chronic labour shortages.

Measures like supporting energy efficiency, helping more small businesses to go green, and the clarity that will allow green tech to fulfil its potential in this country.

These are all measures that will help firms and communities in our region to flourish, and help the UK economy to break out of the cycle of high inflation and low growth.

That hunt for solutions continues within the CBI.

Beckie Hart is CBI regional director for Yorkshire & Humber.