JOHN CRIDLAND | FIRST PERSON
We have learned some painful lessons that
explain why the recovery has been slow and unspectacular. The damage done to the economy was quite deep. The CBI has been very active in promoting a new economic model that puts investment and trade as key drivers alongside consumption. As the economy continues to recover, we believe this is an opportune time for both businesses and government to take on board five lessons from the crisis. The first three lessons are for businesses,
and can be summarised as being clear about: what UK plc has to sell, who will produce it and who will buy it. On the first point we have identified half a dozen capabilities where the UK is truly world-class, ranging from aerospace to the creative industries. Our national industrial strategy needs to focus on supporting these activities. I have been unashamed about promoting
Britain’s mittelstand of medium-sized companies as the key sector for delivering these goods and services. These 10,000 businesses with turnovers of £20 million to £120 million have long been Britain’s forgotten army. The third
lesson is that we must reorientate the UK away from an overdependence on advanced economies towards playing a greater role in serving the new middle classes of the emerging world. The two lessons for government are hardy
perennials: invest in education and invest in infrastructure. These were priorities for the CBI in 1965, and the irony is that, after 50 years, we have still not got our education system right and have not invested sufficiently and effectively in our national infrastructure. There is a lot of remedial action to be taken.
FUNDAMENTAL CHALLENGE While the debate over the causes of the crash, and its consequences will continue, it is clear that Britain’s businesses are now fitter than ever and are well placed to exploit the opportunities of economic recovery. Even so, we should not delude ourselves that the coming period will be without risks. Business is under challenge as never before, and the CBI and individual companies must become better at explaining why businesses exist and what benefits they bring to wider society.
This is why the CBI’s task has shifted from
the early days of our struggle to win the right to be entrepreneurial to today’s fight to retain and sustain that right. As the body that sits on the nexus between business and government, our fundamental challenge is to promote long-term policies and encourage ministers to stick with those plans. Many of these targets – exports, industrial strategy, education, infrastructure and science – need a consistent approach over a 10- to 20-year period. However, we are aware that we live in a political democracy that favours short-term political interventions and constant change. I hope that, like an anchor on a ship, we
can continue to provide a secure mooring for the political establishment. We will ensure our messages to government are consistent and persistent – almost to the point of being dull! As the pace of change has accelerated over the past 50 years, we have learned the need to be as nimble and agile as other civil society groups if we are to win the debate over pro-enterprise policies that sustain living standards for all.
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