CBI calls on next PM to get economy back on track
BUSINESS group the CBI is raising the pressure on the next prime minister with a list of demands on Brexit and beyond.
The organisation said “Brexit has stalled progress on the UK economy for three years” and said companies around the country want both a good deal with the EU but also a “broader vision”.
A Business Manifesto from the CBI – which follows similar rhetoric from the Federation of Small Businesses (FSB) in recent weeks – comes amid signs of a slowdown in the UK economy and warnings from a range of bodies that a no-deal Brexit could push the country into recession.
Issuing a wide-ranging list of areas on where it wants to see action, the CBI has called on the new PM to act quickly on issues including infrastructure, business costs, immigration, trade and skill levels. CBI director-general Carolyn Fairbairn said: “Early signals matter. The new prime minister has a real chance to inject a new lease of life into the UK economy.
“He should take a transformative approach to making the country more competitive, innovative and inclusive. We urge the next prime minister to act fast to get the economy back on track.
“That means no equivocation on essential national infrastructure, from HS2 to Heathrow. It means an immigration system that is controlled but also open and welcoming. And it means fixing economic policy that isn’t
working, from business rates to the apprenticeship levy.”
Both of the candidates for the Conservative leadership have refused to rule out a no-deal Brexit, despite warnings – including one in recent days from the Office for Budget Responsibility – that it could cause a £30bn hit to the economy and be disastrous for industries including automotive and agriculture.
Ms Fairbairn said the CBI “couldn’t be clearer that a no-deal outcome will be seriously damaging” but added that a post-Brexit vision was needed “to drive up economic growth and share the benefits across the UK, including Scotland, Wales and Northern Ireland”.
“We need a long-term, compelling vision for our future. A path to building a Britain that is not only more prosperous, but fairer, grounded in the new Industrial Strategy,” she added.
The CBI manifesto calls on the Government to commit to key infrastructure projects including HS2, Northern Powerhouse Rail and a third runway at Heathrow. It wants Ministers to replace the net migration target with a new system that ensures people coming to the UK are contributing to the economy and society, and to both reduce the proposed £30,000 salary threshold and exempt national and regional skill and labour shortages from the criteria.