Business leaders warn regional inequalities must end

The CBI has called for a new approach to the government’s ‘levelling up’ agenda and warned regional inequalities must be tackled.

In a new report out today (18 November), the business group warns disparities in economic performance are large, both across England and within the regions.

And it adds they are at risk of widening further if government levelling-up ambitions falter in the wake of Covid-19.

Instead, the report calls for a long-term strategic vision which can guide the country through a vital post-Covid recovery and towards long-term prosperity by addressing key challenges in growing skills, enhancing connectivity and attracting investment.

It calls for a new focus on the future of towns and cities, improving digital connectivity, and a wholesale reform of regional funding to ensure a strategic approach to future investment.

The report also recommends short term interventions to help businesses grow, locally designed and delivered business support with a focus on access to exporting opportunities, and interventions to close the gap in regional R&D fund.

But it stresses that a ‘one size fits all’ approach cannot succeed in combating issues which are unevenly spread, and advocates actions being locally and regionally led to ensure they are appropriately targeted.

‘The twin threats of Covid-19 and a potential no-deal Brexit have created a devastating and unprecedented economic challenge,’ said the CBI’s chief UK policy director, Matthew Fell.

‘Building back quickly and effectively is essential, but a recovery driven only by limited pockets of productivity is far from a real recovery, and hardly the basis for a brighter future.

‘Businesses in every corner of England stand ready and willing to play their part in the economic rebound, but too-often see their efforts hampered by inadequate infrastructure and limited access to skilled workers,’ added Mr Fell.

‘The government must therefore prioritise long-term investment in the critical structures, training, and innovation needed to support jobs and quality of life around the UK. This long-overdue levelling-up can lay the foundation for a better, greener and fairer economy for all.’

Photo Credit – Geralt (Pixabay)