South East Businesses and Future Needs
The CBI's internal report discusses the evolving economy in the South East, highlighting sectoral challenges and key requirements for businesses. From the impact of COVID on sectors like Hospitality & Leisure to the need for market stability and skilled talent, the report provides insights on what businesses need in the region. Recommendations include restoring market confidence, setting out a medium-term fiscal plan, and implementing supply side measures for growth.
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Presentation Transcript
CBI - Internal South East Futures: Our Evolving Economy What businesses need in the South East
CBI - Internal About the CBI The Headlines Founded in 1965 by Royal Charter Offices in London, Beijing, Brussels, New Delhi & Washington DC 13 UK regional offices We speak for 190,000 businesses, employing 7 million people - about one third of the private-sector workforce 100 economic and policy specialists Market leader in economic surveys and forecasts 2
CBI - Internal A reminder of how we got here: Strong post-Covid recovery driven by surge in pent up demand Huge supply side challenges as global economy struggles to keep pace . . driving inflation since early 2021 Gas price inflation starts mid 2021 1m people left the labour market since Covid and now economically inactive Yet orders improving despite challenges Consumer spend holding up over summer of 2022 3
CBI - Internal South East sectoral challenges Hospitality & Leisure Sector most impacted by Covid Cost pressures Staffing shortages impacted by immigration policies and Brexit Cash reserves challenging Concerns over impact on future consumer spending Focus incentivising customers Manufacturing & Construction Significant rise in input costs, from energy and supply chain challenges Interest rate rises and loan facilities Warehousing scarcity Ageing workforce and skills shortages Impacting larger infrastructure projects due to lack of clarity on pricing plans Agriculture Average employee shortage at 14.6% Average decrease in production capacity around 19% Seasonal workers scheme - 17% of expected staff did not arrive and 19% left early 4
CBI - Internal What businesses need Clarity Certainty Confidence Inflation under control Market stability Energy support review to look beyond next 6 months Access to skills and talent Infrastructure to move goods and people (including digital) Smoother trade flow A pro-investment environment 5
CBI - Internal The CBI is calling for: Restoration of market confidence. A credible medium term fiscal plan to be set out earlier than 23 November stability is a pre-condition for growth Create headroom for growth by preventing unnecessary business failure Supply side measures Smart taxation capital allowances, investment deductions, R&D tax credits Signal to firms and investors that the UK is open for business Business rates review taxes firms before they make a profit Planning reform we need to speed up the process and get Britain building Apprenticeship levy review more flexibility for firms to invest in staff development Set out a radical new roadmap for economic growth at the next Budget Immigration annual review of shortage occupation list Childcare - Reform prohibitive costs to increase labour participation Removal of trade barriers fix the NI protocol, grow FTAs 6
CBI - Internal CBI supporting Improving connectivity - including Lower Thames Crossing, Stansted links, and Thames Freeport Skills and talent development working with Local Skills Improvement Plans (LSIPs) Thriving regions pushing for greater devolution of powers and funding from Whitehall out to regions Decarbonisation need to keep this on the government agenda Economic clusters - two demonstrators in development Innovation showcasing UK ingenuity around the world Investment zones what role for the private sector in driving these forward 7
CBI - Internal How can we support each other s ambitions? 8
CBI - Internal Thank you For further in formation, contact: Mark Goldstone Head of Regional Policy mark.goldstone@cbi.org.uk 07485 916801 cbi.org.uk
