‘Work needed if West is to reach its full potential’
THE South West is the top region in the country for business innovation but action is desperately needed for firms to boost productivity, a new report reveals.
Research by the CBI, supported by Lloyds Banking Group, shows the region is rated as number one out of the nine English regions for business innovation, as well as for life satisfaction among its residents – aided by low levels of unemployment and deprivation, and short commuting times.
The South West, however, is only fifth out of nine English regions assessed for productivity – but is gaining ground.
The CBI said action to tackle skills gaps, attract investment and improve digital infrastructure is therefore needed to address pockets of low productivity.
It called for investment to tackle patchy digital connectivity, and for more firms to offer in-work training. The region also rates below average for export income.
Ben Rhodes, CBI South West acting director, said: “The South West is one of England’s most vibrant and diverse regions, boasting strength across a wide range of sectors such as cyber and defence, high-value manufacturing and aerospace, fintech, maritime and creative industries.
“It also has the potential to excel in industries of the future. This is a region that is well equipped to play a leading role in the UK’s push for netzero, supported by a high-performing higher and further education sector, and regional assets such as the UK Met Office, GCHQ and the National Composites Centre. There is much to build upon.
“Yet there remains work to do if the South West is to reach its full potential. Long overdue investment in digital and physical infrastructure is crucial, alongside action to tackle skills gaps.
“Leaders in business and at all levels of government must show the ambition and vision needed to foster a culture of growth by investing in the infrastructure, people and skills this region needs.
“Effective partnership between public and private sectors will be essential in enabling the South West to rebuild from the economic ravages of Covid-19, drive up its productivity, and lay the foundations for a better and more prosperous future for all.”
The CBI and Lloyds analysed the comparative economic health of England’s regions, assessing their strength in key criteria around business activity, education, employment, connectivity and social outcomes through a series of scorecards.
These form part of the organisation’s wider Reviving Regions work, highlighting regional successes, as well as the challenges that must be overcome for levelling-up ambitions to succeed in the wake of Covid-19.
The CBI hopes its study can help focus minds in business and Government – at all levels, including the newly elected West of England mayor – on regional growth priorities ahead of the release of its Seize The Moment economic vision later this month.