Signposting a route to prosperity for UK regions to follow
DESPITE the recent – and welcome – sunshine, data last week confirmed that the economic outlook is darkening. The GDP figures only presaged the looming impact of higher prices, exacerbated by supply chain issues stemming from war in Ukraine, weighing on North East’s businesses and consumers.
With energy costs still rising and a National Insurance hike now in force, the tough start to the year is expected to become even tougher as households are forced to tighten their belts further. It’s little wonder that businesses are feeling increasingly pessimistic about the economic outlook for the months ahead.
The Government is likely to face renewed pressure in the coming days and weeks to rethink the support on offer for those under the most extreme pressure. It’s clear that the most vulnerable households and energy-intensive businesses may need further help, so this should be kept under review.
It’s important to recognise that some of the factors weighing on the economy are beyond the Government’s control. It can do little to stem supply chain crunches in Shanghai or end the war in Ukraine. That is why it is critical to do everything possible domestically to address the cost-of-living crisis and restore confidence to our economy.
North East businesses will therefore have been buoyed by the ambition shown in Government priorities laid out in the Queen’s Speech. The focus on infrastructure, energy security and skills can all help to lay the foundations for sustainable, long-term growth. Smarter regulation can maintain the UK’s position as a world leader in finance and put us in pole position for emerging technologies.
This ambition is laudable, but it must now be matched by a relentless focus on delivery. Specifically, action is needed now to unlock investment, build economic resilience and grow productivity. This is where business can help – and is ready to.
The CBI this week launched a flagship regional programme designed to define – and then accelerate – the private sector’s contribution to levelling up.
We believe the key to national economic success is to build a unique recipe for prosperity in each region, empowering communities to forge their own competitive prospectus based on established strengths. In the North East, sectors such as advanced manufacturing, sustainable energy, health diagnostics and immersive digital technologies stand out. The CBI’s role will be to help grow these clusters of excellence from good to great by uniting expertise across business, government and academia and crowding in the private sector investment needed to power sustainable growth.
We’ll be taking a hands-on approach by partnering with businesses and other stakeholders at key ‘demonstrator clusters’ to shape and learn from their evolution. What this means is that the CBI will be writing the playbook on how to build successful clusters in every part of the UK, including here in the North East. In essence, we’ll be signposting a route to prosperity for all UK regions and nations to follow.
It could be genuinely transformational; creating new opportunities, reviving communities and enhancing lives all over country. And to once again reaffirm the role of business as a powerful force for positive, lasting change and a catalyst for renewed economic momentum.
Firms recognise that the UK can only overcome the challenges ahead through true partnership between Government and business to deliver the action needed. This is the only true, lasting antidote to a weakening economic outlook with the power to deliver the growth needed to raise living standards for all.