We must all work together to get the UK economy firing
LAST week saw a host of local and mayoral elections – the last time voters headed to the poll before the hotly anticipated general election.
In the Tees Valley, Ben Houchen secured a third term, and in the newly-created North East combined authority area, Kim McGuinness became its first mayor.
I – and CBI members across the entire region – congratulate both on their successful campaigns.
It has no doubt been a difficult few years for businesses across the UK. High inflation, coupled with the residual impact of the Covid-19 pandemic, and new challenges brought about by international conflicts, have left their mark on the UK economy.
According to the OECD’s latest forecast, the UK economy will perform the worst amongst G7 countries in 2025 – with growth predicted to hit just 1%.
Businesses must work together with politicians, on both local and national levels, to boost those prospects.
UK growth is hampered in part by staff shortages and painful price rises. We need to press ahead with decisive economic priorities – the ones that will make a real difference to people and businesses across the North East and Tees Valley. It’s time to get the UK economy, and importantly, the local economies within, firing once again.
The Government, and incoming mayors, must put delivering jobs, opportunity and prosperity at the top of their agenda.
To deliver sustainable and inclusive growth, prioritising skills development and retention will be crucial. Recent Office for National Statistics (ONS) labour market figures tell us that unemployment is rising and inactivity persists, while there is a heightened number of jobs that employers cannot fill.
To ease the pressure on firms across the North East and Tees Valley, we must improve access to training, in particular, reforming the failed apprenticeship levy, providing more flexibility to employers.
Equally, we must support regional innovation – zeroing in on some of the UK’s high growth sectors, including green industries, life sciences, digital technologies, creative industries and advanced manufacturing, and promoting our industrial strengths on the international stage to attract further investment.
And that support has to be spread across businesses of all sizes.
SMEs form a key part of the UK economy. But many of them are held back by barriers that block the commercialisation of research and development.
Removing those hurdles will help SMEs break through the growth ceiling, adding to the UK’s economy and prosperity.
Local politicians must work in tandem with regional business leaders to seize the opportunities on offer to boost UK growth.
Listening to each other, identifying shared problems, and implementing shared solutions, will help to improve the UK’s economic trajectory and living standards for people across the North East and Tees Valley.