Dragons' Den star Sara Davies backs campaign to boost social mobility
North East business leader Sara Davies has backed a report which claims that lack of social mobility in the workplace is costing the UK economy billions of pounds.
The report from the Co-op says that employers in private sector companies could increase their profits if they adopted strategies such as breaking down barriers to opportunities at work. Greater social mobility could also generate £6.8bn in yearly tax revenues from additional economic activity, the report said.
The report’s authors have called on the Government to create a Better Opportunities Fund to co-invest in social mobility projects and to introduce a lower rate of business rates for social enterprises and cooperatives to boost social mobility
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They said that three-quarters of business leaders believe promoting social mobility would improve their ability to attract and retain staff, while almost a third of consumers are more likely to support businesses that promote social mobility.
Dragons’ Den star Ms Davies, who is the founder of County Durham crafting firm Crafter’s Companion, has backed the report, saying that “As someone who is proud to have Northern working class roots, I really believe that socio-economic background should never be a barrier to success.”
She added: “In the new report, The Opportunity Effect, Co-op and think tank Demos have found that the UK economy is losing out on a huge £19bn - every year - due to the lack of opportunities for people from disadvantaged backgrounds which when you look at it is just absolutely staggering.
“And, the opportunities that greater and improved social mobility would have are plain to see, not just for our economy but for all of the communities and the people that contribute to it. There’s really no better time than the present to take action and tackle this issue head on so that everyone has an equal opportunity to reach their full potential.”
In the report, Shirine Khoury-Haq, chief executive of the Co-op, said: “This report marks an important moment in the UK’s productivity debate and puts social mobility at the heart of that discussion. It shows that breaking down barriers to opportunity can be a much-needed boost for the UK’s economy and for business performance.
“The benefits are too great an economic prospect to ignore. We have seen that countries with greater levels of social mobility are much better at promoting job matching success and greater productivity.
“These are systemic challenges for the UK which this Labour Government – the most working-class Cabinet in history – has correctly identified in its pledge to grow the economy, but it will require bold action to deliver and we need incentives for business to make changes if we are going to harness the true economic potential of enhancing social mobility.”
Backing has also come from former Cabinet Minister Alan Milburn, who lives in the North East. He said: “Improving opportunity in Britain’s workplaces is not only a social imperative, but an economic one too. By doing more to tap the potential that exists among people from all backgrounds, businesses can become more profitable and more competitive. Higher levels of social mobility will accelerate our country’s economic growth.”