Why CBI wants Rishi Sunak to up Government's game on green growth: Beckie Hart

Growth matters more than ever for people’s livelihoods and life opportunities right across our region.

So that’s why Tony said the Prime Minister needed to get on with delivering on the three core pillars for growth that he espoused last year, as Chancellor, in his Mais Lecture: growth; people, capital and ideas.

Tony has four big solutions to get the UK economy moving again.

Yorkshire and the Humber has untold opportunities for green growth; from renewables and hydrogen projects to decarbonisation of properties, new electric vehicle infrastructure and carbon capture and storage. But in the last two years, the UK has lost out on an estimated £4.3bn in green growth market value in Europe alone, as it, Asia and the US “go hell for leather on green growth” and get firms to invest in this area.

Recently the Conservative MP Chris Skidmore issued a critical report of the government’s net zero policy. Tony called for the government to up its game on green growth and improve its record on delivery, reform of planning and gaining consents for green infrastructure.

Tony said super deduction must be replaced after it expires in a few weeks. When this happens, the UK will fall from fifth most competitive tax system in the OECD for capital investment – to the 30th. He would like full expensing for capital investment to replace super deduction. Our region’s businesses

could then raise investment immediately – by enabling cash to flow back to firms when they make their investment, not drip feeding the benefits, sometimes over 30 years.

In his Spring Budget in March, the Chancellor must begin a significant uplift in capital allowances, to at least 50 per cent, before moving to 100 per cent within three years, he added.

Tony set out a bigger bolder approach to tackle chronic workforce shortages that have left one million job vacancies and our region’s firms struggling to fill roles. He said it was a complicated issue that required a multifaceted, joined-up response to the problem of getting thousands of people to return to work. Economic migration to improve labour supply – one of the solutions favoured by business – had been rejected by the Government.

Tony called for a smart, strategic and outcomes focused approach to EU law and future regulation.

Tony called for bold changes, ones that would get Yorkshire and the Humber and the rest of the UK back in the game. He wants to see economic momentum that will do more than get out of recession, and out of the rut, and charging forwards.

To that end he will be speaking at the CBI South Yorkshire Dinner on March 29 to continue the dialogue.

Beckie Hart is CBI regional director for Yorkshire & Humber.