Business betrays Brexit
As A political device it is hard to be a great fan of round robin letters signed by the great and the good. some 35 years ago, 364 top economists put their name to a letter excoriating Margaret Thatcher’s policies, arguing they would destroy growth and jobs.
Instead, her brand of a free market, lower-tax economy transformed the nation’s prosperity.
Nevertheless, the cold shoulder that business is giving No 10’s efforts to rally support around Britain’s negotiating efforts on Brexit is hard to take. At a time when squabbling political pygmies still seem to think they can unpick last year’s Brexit vote, one might have hoped that business would give the Government the support it needs.
My own conversations with chief executives of some of the FTsE 100 top companies suggests they are relaxed about Brexit. They should be. The Government has listened and responded to their request that room should be made for skilled immigration that is important to our engineering, financial and science-based industries.
Yet the normally sensible Institute of Directors and the trade body of the hospitality industry warn of ‘ catastrophic consequences’ if low- skilled migration is restricted. IoD chief Barbara Judge notes there are 700,000 unfilled vacancies and newcomers are badly needed.
What is also true is that even though Britain has an enviable jobless rate of just 4.4pc of the workforce, there are still around 1.5m people unemployed or underemployed in part-time and zero-hours jobs.
Making better use of the apprenticeship scheme, as some employers such as Co-op are doing, would be a good way of moving workers onwards and upwards.
It is time business leaders emerged from their protective bubbles and made clear a determination to make Brexit work.
Recent bids for UK software companies Aveva, Worldpay and Paysafe underline the strength of the UK’s high-tech sector. Diageo is using its marketing prowess to take McDowell’s, the Indian brand of whisky, into Africa. Akzo Nobel has committed to keep its R&D in Britain in spite of the company coming under siege from the Us.
Nissan is strengthening its UK parts supply chain to keep sunderland competitive.
Meanwhile, investment guru Neil Woodford is taking flak for the underperformance of his flagship CF Woodford Equity Income Fund. Yet the underlying principle behind his investments, of keeping faith with good, long-term UK prospects such as Astra Zeneca, shows a belief in Britain’s future.
What a pity that our executive class, loaded with knighthoods, high pay and the baubles of great office, won’t speak up for the nation’s economy and business.
Saving Ross
IN THE aftermath of the financial crisis, many top City executives were seen as damaged goods and desperate boards turned to the Commonwealth for fresh blood.
Edinburgh-born John McFarlane, who spent a decade at Australia and New Zealand Banking, was hauled back to insurer Aviva before becoming Barclays chairman.
New Zealander Mark Wilson was recruited as chief executive of Aviva. And at Royal Bank of scotland the Kiwi Ross McEwan was moved up to lead recovery at Britain’s most troubled lender.
Not to be outdone, George Osborne recruited Mark Carney from Canada to succeed Mervyn King as governor at the Bank of England. Elsewhere, the head of the Canadian postal service, Moya Greene, was brought in at Royal Mail.
McEwan, who left Commonwealth Bank of Australia for RBs in 2012, has emerged as a favoured candidate to return Down Under to clean up after the recent money-laundering scandal at the Aussie lender.
One could understand the temptation, given the political sensitivity of life under the thumb of HM Treasury.
Pity, though, for taxpayers if McEwan was hooked out just at the moment that a return to profits and the sell down of the Government stake of 73pc get ever closer.
Hipster heaven
THE trend towards big food suppliers seeking healthier brands continues. Rowntree owner Nestle has snapped up Us plantbased food firm sweet Earth, putting down roots in a market growing at double digits.
Closer to home, Unilever is snapping up Bristol hipster tea brand Pukka.
Looks like a fertile moment for trendy, organic food start-ups looking to cash in.