CBI
sets out business priorities for next year
In
a year-end letter to members, Carolyn Fairbairn, CBI Director-General, set out
her review of the year that has been and the business priorities for 2018 to
help ensure the economy thrives in all corners of the UK.
Reflecting
on 2017, Carolyn said:
“Certainty,
predictability and calmer politics were all on our Christmas wish-list for
2017, but it was not to be. The year soon turned into a rollercoaster ride,
full of jaw-dropping twists and turns from the start.
“Firms
have responded with resilience but there’s no doubt that the impact of
uncertainty has taken its toll. While the global economy enjoyed a boom, the UK
economy shifted down a gear, with 2017 GDP growth of around 1.5% compared with
2.3% in 2016.
“We
know from members that investment was postponed and in some cases halted. Order
books for manufacturers ended the year in good shape, but inflation of 3% has
bitten on living standards and affected retailers and other consumer firms.
“International
investors love doing business in the UK but end the year longing for greater
clarity.
“Thankfully
the year has ended with some good Brexit news. We all breathed a sigh of relief
when the EU Council in mid-December confirmed that trade talks can now begin
and a status quo transition has been agreed in principle.
“While
Brexit is the top political and economic issue of the day, it is only part of
the picture. Many of the fundamental building blocks of our economy – skills,
innovation, infrastructure – are firmly within our control. And the transformational challenges of our
age, such as AI, digital and low carbon, amplify the need for urgent action.
Ensuring domestic priorities stay high on the Government’s agenda has been a
key theme of our year.
“And
there has been welcome progress. The Industrial Strategy, published last month,
represented ‘a decent first step, and we saw two budgets that were broadly good
news for jobs and investment’.”
Looking
ahead to the opportunities and challenges in 2018, Carolyn said:
“Even
harder work lies ahead. To keep jobs and investment in the UK, binding Brexit
transition terms by the end of the first quarter need to be accompanied by
progress on a framework for a final deal that delivers barrier free trade with
the EU.
“From
our politicians we need unity, clarity and certainty, not a different opinion
every day. Politics will need to work on business timescales if we are to get
the right result for the country.
“We
should be under no illusion about the scale of heavy lifting needed in 2018.
The world around us is transforming. While the UK is consumed with Brexit,
China is building a global infrastructure through One Belt One Road while other
nations are seizing the opportunities of the fourth industrial revolution.
“The
world won’t wait for Britain. We must get on, at speed and with great
determination, with adapting our economy for the future.
On
skills, she said:
“The
top priority must be the urgent transformation of our skills base. The clock
may be ticking on Brexit but it is ticking just at fast in our schools,
colleges, universities and workplaces.”
The
UK is facing a skills emergency. Weaknesses in supporting young people into the
labour market have existed for years, but the changing nature of jobs and skill
needs have turned the situation critical.
“The
CBI will be campaigning for reformed careers advice in schools and to ensure
every young person gets quality guidance and at least 4 interactions with
working life by the age of 16, in every nation of the UK.
“We
will also champion the effective delivery of higher quality technical
education, including T-Levels in England, a reformed apprenticeship levy and
real progress on mass adult reskilling.”
On
innovation, Carolyn said:
“In
parallel, we need more practical action to support innovation in 2018. We will
work with businesses and universities to improve the UK’s approach to
commercialising the leading-edge research we deliver so successfully.
“At
the same time, action is needed to ensure companies adopt tried and tested
technologies that will move the dial on productivity. You can expect a drumbeat
of activity from the CBI on innovation throughout 2018.”
On
infrastructure, she said:
“Meanwhile
planned infrastructure projects must be delivered on time and efficiently
throughout the year. Making progress on
the big projects is essential – Heathrow, Hinkley and High Speed Rail. We will
keep up the pressure, but local delivery aligned to regional economic plans is
equally important. The pipeline is there – now the taps need switching on.
“But
one thing is sure – business has a vital role to play in building a bright
future for our country. The CBI and the thousands of firms we represent look
forward to working in close partnership with a united government to improve
lives for everyone in 2018.”
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