CBI chief makes plea for more balanced economy

In his New Year message, John Cridland said businesses must support employees in every part of the country to move up the career ladder, while also giving a helping hand to young people entering the world of work.

He said: “As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze.

“It’s really positive news that jobs are now being created fairly consistently across the UK.”

Mr Cridland predicted that most firms would increase the size of their workforce in 2014, boosting their graduate intake and the number of apprentices they take on.

He added that wages would pick up in the year ahead as growth takes root and productivity improves. “But there are still far too many people stuck in minimum wage jobs without routes to progression – and that’s a serious challenge that businesses and the Government must address,” he said.

Mr Cridland also called for a UCAS-equivalent vocational system, with similar standing, to help raise awareness for alternative routes to higher skills than university.

“We need to widen the gateways into higher-skilled work for far more people, including those already working, or those for whom a degree may not be the best option,” he said. “Of course, that doesn’t mean the end of the traditional three-year degree and universities will continue to play an important role in delivering growth.”

The new CBI growth indicator, which will be officially launched at the end of January, suggests the recovery is broad-based and continues to gather pace, Mr Cridland said.

“In 2014, we do still need to see far more business leaders getting on planes to sell their products and services in new markets around the world,” he said. “And as confidence continues to improve, we also need to see more companies re-investing their profits in the UK.”

He added that businesses also needed to re-build trust after “taking a hammering” on a range of issues from corporate taxation to energy prices in 2013. “2014 must be the year that business leaders take action to rebuild that trust.”