Decarbonisation at heart of CBI vision of future Britain
The CBI has unveiled a new UK economic strategy that involves decarbonisation, innovation and ‘levelling up’ that could be worth £700bn in commercial growth for UK companies. As part of this plan government must reform regulation to incentivise investment in these goal that could see a greater role for firms in the health and skills of employees in a post pandemic era.
Tony Danker, CBI director general outlined findings from a new, landmark economic plan seeking to establish a competitive, dynamic and future-focussed UK following the shocks of Brexit and COVID-19 and in the run up to COP26 in Glasgow.
The new plan ‘Seize the moment: how can business transform the UK economy?’ is the result of months of research and business consultation. It identifies six ways to transform the economy after the crisis to realise a decade of better economic growth and social solidarity.
The strategy is designed to complement the UK Government’s Plan for Growth. And it sets out how government’s ambitions can be delivered by businesses across the UK, with concrete recommendations for different sectors and for individual firms. It outlines tangible commercial prizes borne from policy ambitions including decarbonisation and skills investment. And it directly responds to the UK Government’s plan with suggested improvements and additional reforms – specifically around regulation, levelling up, and skills policy.
In a speech accompanying the launch of the CBI’s report, Mr Danker argued that 2021 must be a turning point for UK economic policy. He added that failure to make bold changes now will result in a return to business as usual – the persistently low productivity and heightened social division that followed the 2008 financial crisis.
Danker added: “This country will never have a greater opportunity to transform our economy and society for the better than we have right now. This is the moment where we have a genuine chance to make big bets on how the UK economy will grow and compete. To use that appetite to invest, to collaborate globally after a decade of protectionism.
“The pandemic has demonstrated two new facets of business that I am extremely proud of: our humanity and our role as problem solvers. Some critics have felt business was a social problem to be solved. But we are learning that business is uniquely well placed to solve social problems.”
The six prizes for UK business and society identified in the report come from:
- a decarbonised economy, winning the global race to net-zero. For example, the UK could capture £8bn in additional revenues from hydrogen electrolyser production;
- an innovation economy, breakthrough ideas and technologies, adopted by all. For example, greater AI diffusion could add £38bn to UK GVA in 2030.
- a globalised economy, making the UK a trading powerhouse. As an example, around £20bn in additional UK GVA in 2030 from share in seven high-priority, country-sector combinations such as financial services in ASEAN countries.
- a regionally thriving economy, with every region and nation playing to their own comparative global strengths. This would be realised by a new commitment to scaling up local economic clusters such as renewables in the North East or advanced manufacturing in the West Midlands;
- an inclusive economy, where employers recruit more diverse talent from all corners of society and support employees with credible reskilling programmes. Closing future UK skills gaps could provide a £150bn uplift to GVA by 2030; and
- a healthier nation, with better employee health and wellness seen as the foundation of firm level productivity and national economic growth. For example, additional £180bn GVA uplift in 2030, driven by health interventions inside and outside the workplace.
