Businesses crave stability after period of political chaos - Beckie Hart

When you’re running a business, big or small, the thing you crave above all else is stability.

As we heard at the launch of the Humber2030Vision prospectus and the York & North Yorkshire business summit last week, Yorkshire & Humber businesses can’t operate effectively amid the economic volatility seen in recent weeks.

They can’t make decisions around recruitment, pricing, or purchasing. They certainly can’t make big commitments to their future. Investment plans get put on hold – or scrapped.

Opportunities are lost, and growth is stifled.

Yet growth – sustainable, equitable, business-led growth – remains key to many of the UK’s big ambitions. Net zero. Regional prosperity. A high skill, high productivity, high wage society.

That is why it was important for the new Chancellor to act quickly to restore economic stability. Rethinking September’s ‘mini budget’ was vital to allay market concerns – but only the first step towards rebuilding the UK’s fiscal credibility.

It remains critical for Government to publish its medium-term fiscal plan, alongside the promised OBR forecast. Only then can businesses face the future with renewed confidence.

Investment will follow – because businesses are ready. After the challenges of Covid, supply chain disruption, war in Ukraine and surging energy costs, they recognise a genuine chance to transform the supply side of our economy and tackle long-term productivity weakness.

The CBI has already identified £700billion of growth opportunities that are within reach if we get these reforms right.

From leading the world in green tech, clean energy and decarbonisation efforts, to driving scientific innovation, mining digital success and supercharging scale-up successes, the opportunities are out there.

But first, it needs Government to create an environment which encourages and rewards innovation and investment. And it needs this to happen now, as the UK is not the only nation eyeing the prizes on offer.

Let’s start with taxes. Specifically business rates. The CBI has long advocated for reform of an outdated and stifling system which penalises green investment.

Reforms should begin with urgent action to smooth the 10 per cent cliff edge looming in March.

Skills is a big issue; CBI data shows 75 per cent of UK firms have suffered labour shortages this year. Reforming the Apprenticeship Levy into a skills challenge fund which allows money to be spent on flexible training would enable firms to better cope with changing needs.

Immediately updating the Shortage Occupation List can have an enormous and rapid impact. Nobody is advocating an immigration free-for-all, but a flexible system which allows the skills we need into the UK can benefit society while we grow more skills at home.

We can unlock potential in our region and elsewhere by confirming funding and timescales for big infrastructure projects. That includes radical rail upgrades and improved digital connectivity.

It’s a lengthy to-do list. But it’s achievable. And it can be delivered at pace.

Step one, returning stability to the economy, is under way. Step two is using that stability as a launchpad for a bold and future-thinking economy. That is the path to growth. And growth is ultimately the only way to bring down the debt, get inflation under control, and increase prosperity for all.

Beckie Hart is CBI Regional Director for Yorkshire & Humber