Growth is more important than political wrangling - Beckie Hart of the CBI

Whisper it quietly, but even amid the fractured politics of Westminster there is an emerging consensus that politicians of all parties must focus on growth.

It’s about time too. A weakened economic outlook demands a response that inspires confidence, incentivises investment and lays the foundations for sustainable growth right across the region in the years ahead.

Yet even in this time of hard economic headwinds, including the aftermath of the pandemic and now the Russian invasion of Ukraine, the ingenuity and entrepreneurial spirit of British business has continued to impress.

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We have seen firms rapidly pivoting their operations to deliver new product lines, or revamping operations to embrace remote working or forge alternative routes to market – and we know now there has been huge growth in the number of new business start-ups, too.

Whisper it quietly, but even amid the fractured politics of Westminster there is an emerging consensus that politicians of all parties must focus on growth, says Beckie HartWhisper it quietly, but even amid the fractured politics of Westminster there is an emerging consensus that politicians of all parties must focus on growth, says Beckie Hart
Whisper it quietly, but even amid the fractured politics of Westminster there is an emerging consensus that politicians of all parties must focus on growth, says Beckie Hart

A new joint study by CBI Economics and NatWest Group, Generation Covid: How the pandemic shaped the start-up landscape shows the number of UK start-ups grew by 22 per cent during the first year of the pandemic.

It’s a remarkable statistic given the challenges facing business at the time.

Encouragingly, the majority appear here to stay – and are set to impact positively on the communities in which they operate.

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That is demonstrated by the fact that 80 per cent report no plans to wind down their business, and the increased commitments to new technology and sustainability they have made in comparison to their pre-pandemic counterparts.

But what they need now – in common with more established firms operating in our region and beyond – is the wherewithal and encouragement to take their next step.

It’s vital for the UK’s future prospects that founders with the vision and determination to begin their businesses amid the turmoil of a pandemic are supported to scale up.

Confidence is key for investment and growth, as any firm knows. But it’s taken another hit after the Prime Minister’s resignation sent Westminster once again into a tailspin.

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The message from business is clear: the change of leadership must not be allowed to derail the all-important priority of reinvigorating the UK economy.

We cannot afford for the country to be left in limbo while the leadership battle is fought.

The Humber needs a functioning government to move essential legislation forward.

That means advancing the Levelling Up Bill and Financial Services Bill, announcing a replacement to the Recovery Loan Scheme, and revamping the shortage occupations list to help resolve labour shortages.

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Leadership candidates should be prioritising a future of green growth, a tax system which encourages investment rather than fuels inflation, and above all, a plan which gets growth going again. A plan which rewards innovation and decarbonisation, which addresses skills challenges and enables the private sector to be a catalyst of regional prosperity.

Yes, for some us politics is exciting. But the economy is more important.

It matters to what’s in people’s pockets at the end of every month. It matters to boardrooms weighing billions of pounds of investment. And it matters for public services millions of people rely on every day.

That’s why the inevitable political jostling which lies ahead must not shunt these issues to the back seat until the autumn. They are too important to wait.

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For every Yorkshire household struggling to make ends meet, and every Yorkshire business – both old and new – weighing up investment intentions, the time to act is now. Whoever becomes the next Prime Minister, only by business and government working together can we make progress on planning for growth.

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