Partnership not politics is the key to driving economic growth: Olga Watterich

Over the last few years business has battled crises after crises. Brexit in 2016, the Covid pandemic in 2020 and 2021 as well as the inflation and energy crises in 2022.

And, all the while grappling with the reality of climate change, and the transition to net zero.

According to the CBI’s latest economic forecast, 2024 is expected to be another year of weak growth as significant headwinds continue to hinder business, having profound effects on productivity, supply chains, trading arrangements and employment.

That lack of confidence is holding back the investment and improvements in productivity that will deliver real term per capital GDP growth.

Yet, the CBI’s Chief Executive Rain Newton-Smith is hopeful for the future if business and government can work together in partnership. During the dark days of Covid, partnership was a powerful lever, bringing together government, the CBI, the TUC and business in a listening, collaborative spirit that resulted in the jobs retention scheme, ultimately saving millions of livelihoods and companies.

Again, after the invasion of Ukraine, working together to shift supply chains, shore up energy security and deliver humanitarian support.

The opportunities for growth over the next 50 years are vast as the global economy is redefined and transformed by the high-growth, high-tech industries of the future across life-sciences, green tech, creative industries and many more. The UK is buoyed by a position of strength here with the green industry alone contributing £74 billion, its remarkable 9 per cent growth last year fuelled by attracting investors.

Net zero businesses pulled in more than £20 billion in investment funding and foreign direct investment in 2022/23 alone.

Furthermore, the net zero economy defies the north/south divide. In Yorkshire and the Humber and every part of the country the ingredients exist to cultivate green growth, from having natural capital advantages, the research capabilities or established industry know-how.

But it is critical that the UK doesn’t rest on its laurels and gets ahead in the worldwide race for market share.

The US and Europe have already bolted out of the gate with strong regulatory and financial incentives worth trillions to attract investors.

While the UK cannot outspend our competitors, we can certainly outsmart them by government and business working together to design and road-test policies that work. This partnership model is already delivering nationally with the Mansion House Compact, designed with pension funds, having the potential to unleash billions in private investment for high-growth industries.

As the country heads into a year of high political stakes, the CBI urges political parties to leave short-termism at the door, embracing partnership to build a long-term, ambitious strategy to supercharge growth and raise living standards for all.

Olga Watterich is the CBI’s Deputy Regional Director for Yorkshire and Humber