Brexit and domestic agenda ‘are key issues for firms’

RESOLVING BREXIT and prioritising the domestic agenda will provide firms with much needed clarity about the UK’s future, according to an annual survey.

The CBI/Pertemps Network Group Employment Trends Survey – with responses from 304 businesses employing 830,000 – revealed firms are on track to create more jobs. More than two in five expect to grow their workforce in the next year (broadly in line with last year’s 45 per cent), with SMEs being more confident about hiring than larger firms.

However, more than seven in ten (72 per cent) businesses fear they will not have access to the skills they need and identify this as the main threat to the UK’s labour market competitiveness.

This is followed by access to labour (55 per cent) and the ability to move UK workers across the EU (48 per cent). Nearly three in five businesses report that they would be negatively impacted if a new immigration system is introduced before it is simplified so that they can actually use it.

Matthew Fell, CBI chief UK policy director, said: “The UK’s labour market has remained remarkably resilient in the face of tougher economic conditions and uncertainty. But job growth is showing signs of tailing off and businesses are becoming more concerned about the competitiveness of the UK labour market.

“It’s clear what’s weighing heavy on businesses minds is uncertainty about the new immigration system. Businesses believe that this can both support the economy and restore the public’s confidence that immigration is controlled. A strong partnership between business and government is essential to doing so. Whatever the final shape of the new immigration system, it needs to be simple from its first day of introduction and allow firms to access both the labour and skills they need to grow.”