The SCR Chambers: East Midlands
Prime Minister Boris Johnson Following a poor Q3, sales activity improved
towards the end of the year, while cashflow recovered, returning to positive territory. Encouragingly, there were also tentative signs
of positive investment intentions, as the contraction of Q3 gave way to a more positive picture of businesses looking to invest heading into 2020. The election gave the Government a new,
strong working majority and with it, the mandate to start getting things done. The Withdrawal Bill was finally passed before
2019 drew to a close, bringing to an end the deadlock in Westminster and providing some relief for business. Businesses should now be able to count on a
more stable, certain year in which to plan – although it’s just the first step on a long road ahead.
Challenges undoubtedly still remain, but it will
be interesting to see how a more stable political climate will impact the findings for Q1 2020. There are strong messages coming out of
Downing Street around the need to “level-up” and support the regions of the country – like the East Midlands – that have previously not benefited as strongly from Government investment and focus. A key early test for what this means in practical
terms will come on 11 March, with the Treasury’s Budget, which provides a golden opportunity for Government to show it is serious about investing in our region and giving the East Midlands the backing it needs – and deserves – to prosper. The Government must use its newfound
majority to take big decisions to stimulate growth and tackle the prolonged stagnation that’s affecting so much of the UK economy. If ministers take action to reduce up-front
costs, move key infrastructure projects forward and help businesses invest in training and workforce development, they’ll be rewarded with increased productivity, business activity and economic output.
However, they also must move quickly over
the coming weeks to ensure that Brexit is done right, rather than just getting it done. A clear future trading relationship with the EU
is crucial to many firms’ future investment and growth prospects. Unless a comprehensive UK- EU trade agreement is in place by the end of the year, businesses could once again face a cliff- edge – and the seismic changes to trading conditions equivalent to a no-deal Brexit. We also need to see both the political will and
the investment to finally bring about the fully integrated and modern infrastructure network this country has needed for so long. This must include completing all phases of
HS2, electrifying the Midland Main Line, improving our roads and prioritising improvements to the A46 and A5, along with enhancing the region’s digital connectivity and incentivising renewable energy production and lower carbon business activity. And there are basic building blocks of
economic success that have been ignored or misunderstood by successive governments, which the current incumbent has the opportunity to fix. These include delivering a transparent and
predictable business rates system that incentivises investment and is based on ability to pay, changing the regulatory culture to one that supports and enables as opposed to hinders and penalises, and closing the long-standing gaps between business and education. These are all issues that have been neglected
for too long, as Brexit has taken front and centre stage. As the curtain falls on this unprecedented era in the UK’s history, restoring business, investor and consumer confidence to fire-up the economy must be the Government’s top priority. The Chamber will continue to keep the
pressure on Government to ensure this happens. Our next few Quarterly Economic Surveys will provide a strong indication of how well Government is doing against these aims.
Winter 2020 CHAMBERconnect 47
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