Commenting on the publication of today’s productivity plan, Caroline Williams CEO Norfolk Chamber of Commerce, said:
“Whatever label the Government wish to put on it, we have to tackle deep-rooted, structural problems if we are to have a great economy. Norfolk needs world class infrastructure, a streamlined planning process that serves to aid not delay projects, and, crucially, we must improve our export performance. We must also see better access to finance for businesses – this has been the missing piece of the jigsaw for far too long. These are the fundamentals where the UK has consistently failed to punch its weight and which act as a drag on growth and productivity.”
Commenting on specific measures, Ms Williams added:
Planning reform and house building
“Automatic zoning for brownfield sites sounds good in theory. But not if it means that employment land is gobbled up by residential developers. There is already an acute shortage of sites for business growth in many parts of England, and a residential building boom could make that shortage worse if unchecked. House builders must also be prevented from buying up sites that do not require planning permission, without the intention of developing them within a reasonable timeframe.
“If the proposals put forward today result in less bureaucracy and cost for firms seeking planning permission or much needed infrastructure improvements, they will be welcomed. If not, they will join the graveyard of previous planning reforms where the rhetoric was good, but the reality was something else. Unless planning reform makes things simpler for all businesses – not just house builders – it will fail to deliver its full potential.”
Infrastructure
“There remain unanswered questions on the Government’s infrastructure plans. Our rail network is in serious need of an upgrade. Despite the announcement around governance arrangements, businesses would have liked clearer, firmer commitments on how that will become a reality. The commitment to make a decision on airport capacity by the end of the year is welcome. If the government is serious about boosting productivity then the outcome should already be clear. We need extra capacity and the independent Airports Commission has shown the way forward.”
Compulsory Purchase Orders
The Government is talking of reform to the Compulsory Purchase Order system. And this is an area where reforms are desperately needed – for both house building and business expansion plans alike. The BCC has long said this is a key priority for businesses, and if meaningful reform is delivered it could prove to be a turning point for Britain’s infrastructure projects.
“In particular we would have liked to have seen major reforms to the compensation paid to people affected by infrastructure development, from railways to fracking, from airports to roads. This way Nimbyism can be converted to enthusiasm for the essential development of our economy.
Exports
“Plans to move responsibility for promoting exports to individual departments is to be welcomed if those departments make exports a serious priority. However, if we are to make significant progress in the essential rebalancing of our economy, and address our unsustainably large current account deficit, it will require a radically new approach to export support across the UK. We are consistently punching below our weight when it comes to international trade – we currently export less than the Netherlands, a country a third our size. And the OBR predict that the UK will miss the government’s target of having exports worth £1 trillion by 2020 by more than a third, coming up short by £370bn.
“Without a radical change in the support and encouragement offered to UK businesses, we are compromising our medium and long-term economic growth. The business community will be left feeling this is another missed opportunity to offer a serious boost to current and potential exporters.”
Skills
“When it comes to skills initiatives, the sentiment is right. A post-16 skills system and higher quality vocational education should help to meet local labour market needs.
“The National Infrastructure Plan for Skills sounds like a very promising idea. A genuine long-term strategy and vision for skills would allow businesses to better plan and invest in their workforce, and would help to tackle persistent skills shortages. The Chamber network has experience of developing sector skills plans and so we will be taking a close interest in this and stand ready to offer our help.
“To strengthen the focus on improving skills, we want OFSTED to take data about pupils’ careers and employment outcome more seriously in their inspection regime, so that schools have a greater incentive to make sure they are equipping young people with the skills and experience that employers want.”
Devolution
“Our research shows businesspeople in England broadly support the concept of further devolution to their city or local area. But businesses don’t support devolution for devolution’s sake. They support greater local decision-making if it means greater efficiency and better results. One key challenge in passing more authority to local areas is to make sure it is genuine devolution, and not a proliferation of bureaucracy.”
Review of economic statistics
“An independent review into the quality and delivery of economic statistics for measuring productivity is welcome and long overdue. Economic policy decisions and business confidence are very sensitive to official data on how much the country produces. Ensuring these figures accurately reflect the reality of today’s economy is essential.”
