As Brexit paralysis ends, an alliance of business and ministers is vital

The new Government is barely back in Westminster, and it is the earliest of days. But in boardrooms and factories across the UK, business has been taking stock of what to expect. After four years of paralysis, we have a government with an unarguable mandate to lead.

Early priorities are promising: commitment to a “decade of renewal” of infrastructure, skills and digital connectivity; addressing unacceptable regional inequality through a policy of “levelling up”; unequivocal support for the UK’s target of cutting carbon emissions to net zero by 2050. These are all ambitions that business fully shares.

Perhaps most welcome of all is the clear message that this government backs enterprise. And the reply from business is equally clear: we’re here to help and play our part. In fact, we’d go further. As the UK heads into this important new decade, facing unprecedented challenges from climate to technology change, success will only be possible if government and business work together, as partners.

And this relationship needs a reset. Brexit has taken its toll. Now it’s time to look forward, not backward, and build an unbreakable partnership to tackle the biggest issues of the day. So what should the priorities be in 2020, and how can business help?

First, the new government is right to prioritise a good trade deal with the EU. Business welcomes the Chancellor’s ambition for the economy, set out on Friday. And a good deal can support this. For some firms, divergence from EU rules and regulations can bring value, while for many others alignment supports continued investment, competitiveness and jobs. Hence insights from enterprise will be essential for making complex decisions.

The guiding star must be evidence from the whole economy, and business is ready to bring its expertise to the table. Let’s get the trade architecture we need up and running as soon as possible, learning lessons from countries such as the US, Australia and Canada, that have decades of experience.

The service industry must be high on the agenda — it makes up 80 per cent of our economy and is vital for jobs.

Business will continue to stress the importance of free and open trade with the EU, our largest trading partner, while respecting the Government’s wish for a fast trade deal.

As the UK establishes its new global role, the CBI will be one of its strongest ambassadors abroad. As the country’s business voice at the B7, the B20, BusinessEurope and the OECD, we will help relaunch the UK’s international brand, centred on innovation, dynamic manufacturing and world-class services.

The new immigration system is also a top priority. A points-based approach is being designed, and it can be made to work. Business can advise on what’s practical on the ground — particularly for small firms that can’t afford costly processes — as well as bring evidence on what skills are needed at all skill levels, not just the “brightest and best”.

Moving to longer-term challenges, businesses can be a big part of the solution to climate change. The COP26 climate summit being hosted in Glasgow later this year is a fantastic opportunity to showcase the UK as a world innovator in sustainable finance, energy and industry. Firms can help make it a global success, while at the same time taking their own strides on the path to net zero.

Skills and education is another area for a renewed partnership to tackle. According to new joint CBI/McKinsey research, nine in 10 workers will need new skills by 2030 to keep pace with changing technology — at an estimated 10-year cost of £130 billion. Business has the insight to help government move from planning to delivery, and will itself step up on training. It wants to work with the Government to make the apprenticeship levy work better for employers and employees alike.

Our existing education system must also better equip young people for the world of work. Business can help here too, by working more closely with schools. Gatsby Foundation research shows that if a young person has four interactions with business at school, they are five times less likely to be unemployed as adults. We’ve been leading a campaign to help more schools connect with businesses and vice versa.

Perhaps most important of all, successful business can be at the heart of the Government’s mission to “level up” our nation. Firms are already delivering for communities across the UK. But for prosperity to be felt, it must be shared equally. Business backs the Government’s ambition to tackle regional inequality. And proposals to move the House of Lords to York could send an important signal that decisions will be taken closer to those affected by them.

By using our convening power and links with metro mayors and local enterprise partnerships, the CBI can help ministers get more devolution deals over the line, giving local leaders greater clarity on the resources available to help their regions thrive. As is evident from the West Midlands to the North West, regional industrial policies, delivered in tandem with business, reap rewards.

The UK has so many strengths. British companies and products are envied worldwide. Our country remains a magnet for international investment. We have some of the world’s best universities, cutting-edge manufacturers and first-class services. Our language, location and ease of doing business all give the UK a crucial advantage.

British business is as optimistic as the Prime Minister about the opportunities available for our country. Let’s work together to deliver a true decade of renewal for the UK.

Dame Carolyn Fairbairn is the Director-General of the CBI