Tony Danker

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.

Tony Danker said: “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.

“To lift thousands of young people out of limbo, so they can reach their potential. And to build on that bond between employers and employees closer than ever before.

“We have a grand plan for the whole nation. On the face of it, you might think that only some firms can benefit; we see prizes for everyone.

“I know we have much to worry about in the short run. The Covid-19 crisis is far from over. It’s not easy for many trading in a new regime with the EU. Many firms have a lot of debt and uncertainty about the future. But we know from crises that new realities are shaped.”

The six prizes for UK business and society identified in the report come from:

• A decarbonised economy, winning the global race to net-zero.
• 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. 
• 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.
• A healthier nation, with better employee health and wellness seen as the foundation of firm level productivity and national economic growth. 

Beyond the activity required to achieve the prizes presented above, the CBI’s report also includes specific recommendations for boosting the UK Government’s Plan for Growth. 

The report recommends regulatory reform for investment and innovation, requiring all economic regulators to prioritise investment, innovation and agility as part of their core remits and creating globally leading clusters in our regions and nations.

The strategy also calls for collaborative working with the CBI to develop coalitions that can scale up economic clusters around the country and write the playbook for how to build distinctive regional and national comparative advantage.

CBI has also called for transformed skills provision for the economy of tomorrow, making skills far more demand-led and accessible to all and freeing up money trapped in the Apprenticeship Levy so that business can invest in everyone’s lifelong learning.

The report has also recommended the creation of a new Strategic Dialogue on Funding our Future, co-chaired by HM Treasury, the Bank of England and the CBI, to bring together the whole value chain – from hungry investees to private investors – on finance for growth and investment. CBI has said that this will help shape proposals to unlock more pension funds, patient capital and private sector finance.