It should seem incredible that the two remaining contenders to be Prime Minister are out of touch with what businesses want but sadly it is not. There seems to be no discussion at all about what employers need at this time and quite frankly it is not inflationary personal tax cuts. Businesses need to see a stable future that allows them to make investments, they need support and where appropriate tax relief on these investments.
Almost all sectors of the economy are struggling to hire, airports, airlines, the whole hospitality and service economy, freight and distribution companies and the care sector. It is encouraging that unemployment is so low, that employment is high and wages are rising, but whilst we seek to ‘grow our own’ into these sectors this will take a few years and the immediate issue is we simply need to let more workers in or large parts of the economy will continue below capacity and productivity will not improve.
Fuel costs are another burden, wholesale gas prices have risen again this week and are now five times what they were a year ago, with Russia further restricting supply then they are only likely to increase as we head into the autumn and the increased demand of the winter. Wages are also rising, along with raw materials so there is little good news on costs for businesses.
Some of these factors are outside the gift of government and I do support to a large extent that most of the time market forces will control these issues and they will settle. However, the sheer range of current headwinds for businesses and the fact many of them are quite macroeconomic and outside of their individual control results in businesses seeking more central intervention and support.
The airwaves are going to be full for the next 6 weeks of promises to change, of calls for a new future, a fresh start and other strap lines. What businesses need is some surety of the future, a plan they can see being delivered and some hope they will be listened to, after all, business will be at the heart of any recovery.
