The key to the success of the government’s ambitious plans for the economy and improved public services, is the supply of skilled workers for eight key priority industrial sectors, and public services, particularly the NHS. So, the Industry Forum was delighted that Baroness Jacqui Smith, Minister for Skills was able join us today to lead a roundtable on, ‘Fixing the skills crisis.’ The meeting was hosted by Checkatrade, and Benjamin Bell their Director of Corporate Affairs welcomed the minister and guests to the meeting at their Kings Cross HQ. It was clear that the skills strategy is a vital component of the soon-to-be-revealed industrial strategy which will encompass the delivery of net zero emissions, increased defence spending and major infrastructure investments - all programmes that will need specialist skilled workers, and provide well-paid jobs. A previously piecemeal approach to skills which confused many business people is being transformed into a framework of initiatives which will aid understanding by young people entering work, and businesses that need predictability of skilled labour supply in order to justify investments.

The Industry Forum Spring Reception turned into a party celebrating some good economic news, the European Union reset agreement and, of course, the Chelsea Flower show. It was hosted by Gareth Thomas MP, the Business and Trade Undersecretary of State with a dauntingly wide portfolio including Services, Small Businesses and Exports.

The reception was sponsored by two successful and hyperactive business associations the Horticultural Trades Association and the British Coatings Federation who, between them, represent more than 1000 small and medium businesses. Fran Barnes of HTA and Tom Bowtell of BCF gave us a few words on the significance of their sectors and the benefits of close cooperation with a government focussed on business and growth.

Guests included companies, academics, diplomats and MPs (some of whom dropped in while passing). Despite the challenging international scene and the storm clouds coming across the Atlantic, there was a real spirit of optimism that the seeds of UK recovery are germinating. To complete the evening, HTA supplied party bags of seeds for the garden.

With so much political attention currently on manufacturing and logistics, The Industry Forum, this week, turned its attention to ’Current issues for UK financial services.’ To survey this vast topic, we invited new MP for Rochester and Strood, Lauren Edwards, who trained at the London School of Economics and Political Science (LSE), and has worked at the Bank of England and the HM Treasury, to lead a round table for members and invited guests. Lauren concisely summarised what is happening in financial services, particularly in terms of government actions to ensure the proportionate level of regulation in banking, insurance and investment. Questions raised in the Q&A included the need for a longer-term Treasury planning horizon, the risks and opportunities arising from crypto currencies, the likelihood of a Bank of England issuing a digital currency, and the continuing need to help small businesses get enough credit to maintain and expand their activities. A key theme was the need to simplify the post 2008 banking crash regulations without reducing protections and thus to enable the strong UK financial services sector to do its job of competing in international markets and supporting the UK economy.

Recently, Sarah Smith MP, Keir Starmer’s ‘Opportunity Mission Champion’, led a broad ranging Industry Forum roundtable on ‘Creating Opportunity in the UK.’ The meeting was hosted by the Chartered Insurance Institute and Industry Forum members and guests were welcomed to the CII City offices in the iconic Walkie Talkie building, by Katherine Kennett, Policy and Public Affairs Manager at CII. The discussion covered the broad ambitions of the Labour government to reverse the stifling of opportunity caused by economic stagnation and austerity policies dating back to the 2008 banking crash. To help achieve this, a primary government mission is to create a virtuous circle of more opportunity leading to increased prosperity and the ability to fund investment in education, training, infrastructure, healthcare, technology and more. The hurdles facing the complete economic turnaround needed are high, bearing in mind the poor financial condition of the economy and the challenging international security situation. Meanwhile, there are inevitable tensions between urgent short-term needs in such as helping young people not in education, employment or training, improving healthcare, social care, and housing, and longer-term investment in areas like early years education and the transition to renewable energy. Nevertheless, sticking to fundamentals including clear objectives, a focus on improving training and skills, and long-term planning is the only approach which can succeed, and is also the approach taken by most successful companies.

The Industry Forum was delighted to welcome Labour’s National Growth Champion, Daniel Tomlinson, to lead a roundtable on ‘Delivering the Growth Mission.’ The meeting was hosted by the Railway Industry Association and introduced by their Policy Director, Robert Cook. Dan Tomlinson, an economist who has worked at the Resolution Foundation and in HM Treasury, outlined the severe structural economic problems that need to be tackled to restore growth in a stagnant UK economy. He also explained the important role of the backbench ‘mission champions:’ They will act as communications bridges on key issues to explain government plans and actions and relay back comments and suggestions. With plenty of comment and ideas from the wide range of UK and international businesses present, the discussion covered how the government and companies can work together to raise investment by the private and public sectors and address bottlenecks in the economy, particularly in transport and housing. There was also discussion of the need for the Civil Service to improve its commercial skills in areas such as procurement, project appraisal and ensuring value for money. As in all turnaround situations, a key question is where to make changes and allocate resources which will start to fuel the recovery. This will be made considerably more difficult by the urgent emerging defence needs!

Rachel Reeves’ budget on the 30th October, promises to be a turning point for UK economic fortunes. To discuss, not just the direct fiscal implications, but also the real-world business opportunities and pinch points arising, the Industry Forum is convening a lunchtime roundtable the following day. We are inviting economists, business people and non-Treasury politicians for a free-ranging discussion at a lunchtime roundtable. The conclusions will be published without individual attribution, for wider discussion.

Panellists:

Will Hutton - Political economist, author and journalist
Sarah Howard - CEO, British Chambers of Commerce
Vicky Pryce - Chief Economic Adviser, CEBR
Andrew Smith - Chief Economist, Industry Forum