Business | Knowledge


Rain Newton-Smith, CEO of the Confederation of British Industry (CBI)


IT WAS LOOKING SO GOOD Before the Budget, indicators were showing the print industry was close to a mini renaissance as it was business was near to reaching the levels of pre-COVID; and according to the BPIF, confidence and output was set to be on the rise in the new year. But in February, the trade association released its latest figures regarding the wide-format world and statistics showed that confidence in the industry has dropped, with output expected to stagnate. Charles Jarrold, BPIF chief executive, said at the time: “Hopefully the dip in the forecast is only a short-term blip, and it can be turned around. “Companies are currently looking to adjust and adapt to Government decisions and searching for a way to invest so they can boost their productivity and increase profitability. “If the Government can help stimulate business


investment, then confidence could quickly turn positive once more.” Yet the Spring Statement did little to imbue this sought-after confidence. A recent survey conducted by personalised workwear,


uniform, and PPE supplier MyWorkwear revealed 72% of businesses are actively concerned about the upcoming wage and NIC increases with 68% explaining the costs will be passed to the consumer. The survey went on to find that around half of those


asked (44%) were worried their business would struggle to survive in he next five years because of escalating costs.


Co-managing director at MyWorkwear, James


Worthington, said: “The feedback we’re hearing from customers is that businesses are struggling, and concern is growing about the future of the UK economy. “As well as increasing costs from employer National Insurance Contributions and increased minimum wage, the report noted that inflation rates are a huge concern in business owners’ worries, as well as a lack of skilled labour.


“The inflation rates we are experiencing ourselves are causing us to look at new commercial activities and new pricing structures to try and find ways to absorb the price hikes that are in addition to our usual standard annual price increase.”


THE LORD GIVETH…


It is this mindset that will undermine the intended purpose of these changes. The Government is looking to grow the capability of household spending, but if everything goes up, then confidence in that spending will go down and thus stop the circulation of capital.


It is finding a compromise between the public and private sector that will help drive growth, at least that is the opinion of Ms Newton-Smith. She concluded: “A landing zone that commands the confidence of businesses and workers can still be found by taking the time to build a consensus that will give these reforms the footing to have a positive, lasting legacy.


“Protecting public capital spending is the right


move to create the foundations for future growth, but the government cannot deliver growth alone. “Only the private sector can provide investment at the pace and scale we need to boost productivity,


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create jobs and improve living standards.” “The Government must use the Spending Review to double down on unlocking investment to secure a more positive outlook for long-term growth. “Setting a world-leading goal for R&D investment, giving employers the flexibility to choose the training and qualifications that make sense for their workforce, and improved public-private partnerships to fund better homes, better schools and better transport would all help deliver growth.” It is too early to give a definitive answer on what lasting impact these changes will make or have made, and with only one major financial announcement from the Government each year, it may take its time to be altered.


But it seems companies are hoping for the best, preparing for the worst. With what the Chancellor suggests, there is a brighter future to come, but it may follow a rough period as many employers take time to embed into the new status quo.


Charles Jarrold, BPIF chief executive


IN ITS CURRENT FORM, THE EMPLOYMENT RIGHTS BILL RISKS IMPOSING A SIGNIFICANT REGULATORY BURDEN ON COMPANIES WITH DAMAGING CONSEQUENCES FOR GROWTH, JOBS AND INVESTMENT


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