Focus on Growth over the political summer
There has been so much focus on the politics in Westminster, as the Conservative Party votes on the next Prime Minister – and it will be a few weeks before the UK’s new leader is confirmed.
Whoever emerges victorious will also be charged with steering the UK through a cost-of-living crisis, levelling up the country and driving us towards net zero. All while war rages in Europe.
The choice made by Conservative members in the weeks ahead will therefore impact on every community, household and business. Our finances, our future ambitions, our quality of life, will all be defined by this decision.
That’s why the idea of tax cuts has been such a hot topic. But here we urge caution: tax cuts may be popular, but they are not a comprehensive solution to the cost-of-living crisis. Because they don’t address the underlying causes of weak growth – and it’s growth we need to boost the UK’s economy.
Sustainable growth. Shared growth. Not growth that relies only on government or household consumption, which is doomed to fail. Nor measures designed to fuel spending during a period of high inflation, which will likely feed it and add to the public debt.
We need government – whoever it is led by – and business to work together pursuing clear opportunities for greater growth. The CBI reiterated this message in an open letter to the leadership candidates and will be working hard to ensure that there isn’t stasis over the summer, and our message is front of mind with officials and in day-one packs for whoever makes up the new Cabinet.
REC launch new report
A new study from the Recruitment and Employment Confederation says that Labour and skills shortages risk significant damage to the UK economy, reducing our productivity and ability to invest, grow and raise wages sustainably. Inaction could lose the UK almost the equivalent of the entire defence budget – or two Elizabeth Lines – annually.
With no action to reduce the shortages, the progress on levelling up, delivering economic growth, and the transition to net zero would be jeopardised.
The REC’s report, Overcoming shortages: How to create a sustainable labour market, provides a number of recommendations for both business and government on what can be done and urges both firms and politicians to put workforce at the heart of their thinking
Neil Carberry, Chief Executive of the REC, said:
“We haven’t had to look far for evidence that labour shortages have the power to bring segments of the UK economy to their knees recently. From chaos at airports to driver shortages and NHS waiting lists growing – the underlying issue of labour shortages has burst out into the open. The modelling we are launching today show the damage that could be done if we don’t solve these shortages – more than £30 billion in lost potential every year, as well as lower productivity, lower wage growth and rising inflation.
“Only growth can create the environment to maintain public services and a low tax rate – no government can afford to leave £30bn on the shelf.”
In other news this month
Trade association wins
The first six months of 2022 have not allowed any breathing room after grappling with the pandemic. Our Trade Association members have continually collaborated and supported on important topics, whether that be the support on COVID-19 and business requirements, the ‘Living with the Virus’ document we all collaborated on, the business insights dashboard which was fed directly into government, or the collective power and coming together to effectively utilise resource during the Ukraine and energy crisis.
The CBI has compiled, in a helpful timeline, the past six months of wins for business.
Key dates for September
Trade Association Network events – keep an eye out for invites. Email Henry if you would like to join one of our TA Networks (Decarbonisation, Skills and Changing Workforce, Thriving Regions, Innovation, Trade and Health).
CBI Conference Series: Future of Work – 13 September
Q3 Trade Association Council – 21 September (CEO participation encouraged)
Party Conference season: let us know you plans.
Liberal Democrat Conference
Brighton from Saturday 17 September until Tuesday 20 September
Labour Party Conference
Liverpool from Saturday 24 September until Wednesday 28 September
Conservative Party Conference
Birmingham from Sunday 2 October until Wednesday 5 October
CBI Annual Conference - 21 & 22 November in Birmingham
Q4 Trade Association Council – 1 December (CEO participation encouraged)
Trade Association Network events – keep an eye out for invites. Email Henry if you would like to join one of our TA Networks (Decarbonisation, Skills and Changing Workforce, Thriving Regions, Innovation, Trade and Health).
CBI Conference Series: Future of Work – 13 September
Q3 Trade Association Council – 21 September (CEO participation encouraged)
Party Conference season: let us know you plans.
Liberal Democrat Conference
Brighton from Saturday 17 September until Tuesday 20 September
Labour Party Conference
Liverpool from Saturday 24 September until Wednesday 28 September
Conservative Party Conference
Birmingham from Sunday 2 October until Wednesday 5 October
CBI Annual Conference - 21 & 22 November in Birmingham
Q4 Trade Association Council – 1 December (CEO participation encouraged)
Trade association updates
techUK has elected Sheila Flavell CBE as its president.
Trade association advocacy in action
Advertising Association co-ordinate Advertising’s leaders to set pathway to net zero industry worldwide: Leaders from many of the largest companies and associations in the world’s advertising industry have announced their intent to apply learning from the UK and plan the roll out of Ad Net Zero internationally to major markets
CBI Trade Association Council took place at the end of May. We were joined by Matthew Fell (Chief Policy Director, CBI), and Louise Hellem (Director of Economic Policy, CBI) as well as a brilliantly engaged group of senior trade association leaders to discuss the Chancellor’s three key investment priorities for Budget and a look at how to revolutionise investment in People, Capital and Ideas. Whilst our landing of this might change with the change in government, the key points discussed are still highly relevant for our engagement
To attend future meetings, please contact Henry.
See our recent campaign and resources on Managing the increasing cost of doing business and share with your members.
CIPR and TAF launch strategic partnership to support sharing best practice in communication for trade associations.
Energy UK calls for government intervention on energy bills as problem ‘too big for any industry to meet’.
The Scaffolding Association to hold UK’s first dedicated scaffolding and access conference event on 29 September.
UK Hospitality and the British Beer and Pub Association estimate staff shortages cost hospitality £21 billion.
BBC StoryWorks and Innovate Finance announce new series on financial inclusion, wellness and net zero.
WaterUK encourage the public to save water as hot weather sees increases in demand.
Winter bill predictions require further Government intervention, warns Energy UK.
UK Steel calls for a renewed focus on establishing a positive policy environment for steelmaking.
According to new research from SMMT, UK automotive manufacturing carbon footprint falls to lowest ever level.