The CBI will today tell ministers that the free market cannot be allowed to advance, with areas of “benign neglect” that for decades have left the country with a “branch economy” where there are too many The company is concentrated in London and the southeast.
Speaking at the Port of Tyne at the start of the business group’s three-day annual conference, the CBI director general, Tony Danker, will argue that the UK now has a “blow to redemption” if companies The high-quality work needed to fuel the net zero digital economy was created in the former industrial hubs.
“Simply saying the market will fix this is not good enough,” Danker would say. “There are liberal marketers in the debate who say that government should never play such an active role. But I don’t know of a country in the world – including, and especially the United States – where governments don’t operate in economic geography.”
Boris Johnson’s administration has been criticized for its lack of clear business direction following the UK’s departure from the EU and during its transition to a greener economy. The Prime Minister has delayed a review of business rates and the national insurance tax has been increased to pay for healthcare, increasing labor costs. One of the first decisions taken by the business secretary, Kwasi Kwarteng, was to scrap the Industrial Strategy Council, which was established in 2018 as an internal advisory organization to advise on the regeneration of areas.
CBI speaks to 190,000 businesses, including 7 million users, about a third of private sector employees. With the theme of promotion, its conference will be held in several locations for the first time. The combined event will be streamed live, with sessions held in the presence of business leaders in places including Birmingham, Yeovil and Swansea.
Danker is calling for cooperation, saying neither government nor business can tackle the leveling alone.
“Since the 1980s, we have let the old industries die – providing little more than a benign pass on what is left behind. He would say it is an economic policy around slowing down.
With the emergence of new industries such as biotechnology, space travel and cybersecurity, there is now an opportunity to create wealth across regions, he will add. CBI wants former industrial hubs to play a role in the transition to a less polluting economy, with clusters operating in hydrogen – which could replace domestic fuel gas – offshore wind and carbon capture.
Danker will point to south Wales, which is emerging as a player in the production of certain types of computer chips.
He would warn that business investment is an “achilles heel”, underpowered since the 1990s and on track to return lower after the pandemic.
“The truth is that in too many sectors the UK is like a branch economy,” he would say, with the most productive parts of a sector, such as headquarters, often located. based in London and the southeast, and branch and back office directors based everywhere else. “
The CBI will today announce the creation of a new committee, the Center for Prosperous Areas, to act as a vehicle for the private sector to encourage the creation of hubs of industrial activity. The center will launch two pilot demonstrations and be staffed from all countries and regions of the UK by local, national and multinational businesses and universities or colleges.
Danker urges businesses to participate in the strategy for regions with the mayor and central government, making new investment decisions in universities, airports or logistics hubs.
