CBI predicts UK economic growth to remain ‘steady but subdued’

The Confederation of British Industry (CBI) has stated that economic growth in the UK is on course to remain ‘steady, but subdued’ over the next couple of years.

The business group said that 2017 has seen ‘tepid growth’, and predicts that Gross Domestic Product (GDP) will grow at a rate of 1.5% in 2017, 1.5% in 2018 and 1.3% in 2019.

It also predicts quarterly GDP growth of 0.3% up to the end of 2019.

Commenting on the forecasts, Rain Newton-Smith, Chief Economist at the CBI, said: ‘After a timid 2017, UK economic growth is set to remain steady but sluggish, with less pep than we’ve seen over the past few years.

‘We expect domestic demand to remain soft. Household spending will remain under pressure from squeezed real wages and Brexit uncertainty will weigh on business investment.’

The CBI called for the government to make progress in its Brexit negotiations with the EU, and urged for clarity in regard to transitional arrangements.

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Businesses and government ‘must adopt cutting-edge technologies’ says CBI

Businesses and government ‘must adopt cutting-edge technologies’ says CBI

In a new report, the Confederation of British Industry (CBI) has called for UK firms and the government to adopt new ‘cutting-edge technologies’, such as artificial intelligence (AI), blockchain and the Internet of Things.

Image result for adopt cutting-edge technologies' says CBIIn its report, the CBI found that 49% of UK firms believe AI will help to ‘fundamentally transform’ their industry, with 23% stating that it is already impacting on their sector. A further 37% believe AI will have a significant impact on their industry in the next five years.

Meanwhile, 11% of businesses surveyed by the CBI said that blockchain is already impacting on their industry, and 54% of firms revealed that the Internet of Things is changing the way they work.

However, the report revealed that only a third of UK businesses currently have the skills and capabilities to utilise AI technology. The CBI also found that firms looking to make use of the Internet of Things are concerned over the security and privacy of their devices.

The CBI has called on the government to establish a joint commission in order to examine the impact of AI on workers and jobs. It also suggested that the commission should outline how AI could boost UK productivity, prosperity and economic growth.

Commenting on the issue, Josh Hardie, Deputy General of the CBI, said: ‘The UK must lead the way in adopting these technologies, but we must also prepare for their impacts. That’s why we urge the government to set up a joint commission on AI in 2018, involving both business and employee representatives, to better understand the impact on people’s lives, jobs and our future economic growth.’

CBI publishes Autumn Budget submission

CBI publishes Autumn Budget submission

The Confederation of British Industry (CBI) has published its Autumn Budget wishlist, outlining a range of measures that it believes will help the UK to ‘grow its way out of austerity’.

Image result for confederation of british industryThe business group has highlighted a host of strategies, designed to fuel business investment, spur innovation and promote competitiveness in the UK tax system.

It has called for the government to ensure that business rates ‘incentivise productive investment’, redesign the Apprenticeship Levy to ‘boost productivity growth’ and outline long-term plans for Insurance Premium Tax (IPT) and the corporation tax surcharge, with a view to phasing this out over time.

The CBI has also called for HM Revenue & Customs (HMRC) to be ‘properly resourced’ to ensure that the correct amount of tax is paid at the right time, in order to allow business owners to concentrate on running their business.

In terms of infrastructure, the CBI has urged the government to ‘immediately distribute’ the £490 million Spring Budget pledge to help ‘improve local infrastructure networks’.

Commenting on the submission, Carolyn Fairbairn, Director General of the CBI, said: ‘Faltering consumer and business confidence risks lowering living standards, so it’s important the government sends firms the right signals they need to continue investing and growing.

‘Ministers need to build on the basics to get our economy in shape for the challenges ahead by demonstrating a continuing commitment to free markets, a pro-enterprise environment and maintaining a relentless focus on the drivers of productivity.’

Government establishes new Brexit business group

The government has created a new business advisory group, comprised of five major UK business groups.

The Confederation of British Industry (CBI), the Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC), the Institute of Directors (IoD) and manufacturers’ organisation the EEF make up the new business group, and their director generals will meet weekly with the Business Secretary, Greg Clark.

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During a recent parliamentary session, Mr Clark reported that he had met with businesses, business leaders, employees and investors around the UK since the Brexit vote. The new group will seek to ensure that business has more input into the Brexit negotiations.

Dr Adam Marshall, Director General of the BCC, hopes that the new business advisory group will also help to achieve a ‘business-friendly’ Brexit outcome that addresses firms’ ‘real-world needs’.

Commenting on the creation of the new business group, Mr Clark said: ‘The government is creating a new EU exit business advisory group to ensure business is not only heard, but is influential throughout the negotiations.’

Meanwhile, Stephen Martin, Director General of the IoD, stated: ‘A good Brexit outcome is one that puts the economy, jobs and prosperity right at the centre of the negotiations, so we wholeheartedly welcome the formation of this advisory group by the government.’

Business groups call for ‘softer’ Brexit

Five business groups, including the Confederation of British Industry (CBI), the Federation of Small Businesses (FSB) and the British Chambers of Commerce (BCC), have called for the government to secure continued access to the European single market until a final Brexit deal can be struck with the EU.

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The letter to Business Secretary Greg Clark calls for the government to ‘put the economy first’, and to ‘prioritise an early agreement on guarantees for EU citizens’ already residing in the UK.

A final agreement between the UK and the EU should guarantee certain economic principles, as outlined in the letter. These include securing tariff-free goods trade between the UK and the EU, establishing a flexible system for the movement of labour and skills between the UK and the EU, and protecting the benefits of free trade agreements currently delivered through the EU.

The letter, which is also signed by the Institute of Directors (IoD) and manufacturers’ organisation the EEF, comes as Brexit Secretary David Davis enters into formal Brexit negotiations with the EU.

Commenting on the negotiations, Mr Davis said: ‘I want to reiterate at the outset of these talks that the UK will remain a committed partner and ally of our friends across the continent. And while there is a long road ahead, our destination is clear – a deep and special partnership between the UK and the EU. A deal like no other in history.’

The UK is set to leave the EU by the end of March 2019.

Business groups react to General Election result

With the 2017 General Election resulting in a Hung Parliament, the UK’s leading business groups have been giving their reactions.

The Institute of Directors (IoD) has warned that businesses have now been ‘thrown into political limbo’.

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The Confederation of British Industry (CBI) is urging politicians to form a functioning government which offers security and places the economy at the heart of its agenda.

CBI Director-General Carolyn Fairbairn said:

‘For the next government, the need and opportunity to deliver an open, competitive and fair post-Brexit economy that works for everyone across all our nations and regions has never been more important.’

Meanwhile, the Federation of Small Businesses (FSB) has called for a delay to the beginning of Brexit talks.

FSB National Chairman Mike Cherry said:

‘It is important to go into the Brexit talks from a position of strength, focused on getting the best deal possible for trade and access to workers and skills. Negotiations should be led by a government and a Prime Minister that will be in place for the duration, and so we call for a delay to the scheduled start of negotiations rather than a rush to begin in 11 days’ time. The need for a transition period now becomes even stronger, providing the time to get Brexit right.’

The British Chambers of Commerce (BCC) also emphasised the ongoing uncertainty for business communities, and echoed the FSB‘s call for a delay to Brexit negotiations.

Dr Adam Marshall, BCC Director General, said:

‘Whilst companies have for many months done their best to screen out political noise in order to focus on their own operations, this result will prove much harder for UK businesses to ignore.

‘No business would walk into a negotiation without clear objectives, an agreed starting position, and a strong negotiating team. It is hard to see how Brexit negotiations could begin without answers on these important questions.’

Half of businesses believe artificial intelligence will ‘transform their industry’

A survey carried out by the Confederation of British Industry (CBI) in association with IBM has revealed that 49% of businesses believe artificial intelligence is set to ‘fundamentally change’ the industries and markets they operate in.

The survey, which quizzed 160 UK businesses, found that 73% of respondents have invested in cloud systems over the past 12 months, 79% have invested in mobile technology and 71% in security.

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42% of firms also plan to invest in artificial intelligence in the next five years, the CBI found.

However, the business group warned that a ‘growing digital gap’ exists between firms that are championing artificial intelligence and those that are falling behind.

Josh Hardie, Deputy Director-General of the CBI, stated: ‘Innovation in business is essential for advanced economies such as the UK.

‘British businesses are directing resources into new technology, with cloud, mobile and security investments forming the UK’s digital backbone.

‘The digital gap risks becoming a chasm with artificial intelligence set to transform the face of UK businesses.’