Posts tagged CBI
The survey of 398 firms found that output growth over the last three months remained steady but subdued.
But the outlook is much brighter for the next quarter, with output volumes expected to rise rapidly – the strongest expectations since April last year – with the anticipated pick-up in variety of markets and mechanical engineering sectors.
Exports orders are also at their highest level for three months, while total orders are broadly flat. Meanwhile expected price inflation has fallen back to levels last seen midway through last year.
Anna Leach, CBI Head of Economic Analysis, said: “Manufacturers appear more optimistic about the next few months than the official figures and commentary would suggest, with sharp rises in output expected right across the sector.
“Total orders were steady and in line with long-run averages and there was some pickup in exports, possibly helped by the weak pound.
“Price expectations have fallen to the lowest level for six months – driven by inflation expectations plummeting from near-record highs in the food, drink and tobacco sector.”
Speaking at the CBI’s conference in London, the Prime Minister said the Government will embark on radical reforms to speed up key decisions that will boost economic growth and “eliminate bureaucratic rubbish”.
In a wide-ranging keynote speech, Mr Cameron said the UK was in the “economic equivalent of war” but hailed signs that Britain was again “selling to the world”. “Frankly, we need this buccaneering, deal-making, hungry spirit now more than ever,” he said.
The prime minister said he had taken “massive steps towards leaner, faster government” but acknowledged that more needed to be done to speed up decision making.
“We urgently needed to get a grip on this,” he said. “Whitehall had become too risk-averse – too willing to say ‘no’ instead of ‘yes’”.
Mr Cameron said the Government would restrict the use of “time-wasting” judicial review applications and reduce the time limit for people to bring their cases as well as charge more for reviews.
He also pledged to stop a “new torrent of rules and regulations” from Brussels that threatened to slow the development of county’s economy, pledging to ensure that new roads and infrastructure projects are build more quickly and efficiently.
You can read the full speech of Prime Minister David Cameron from here.
John Cridland, the CBI director-general, has urged the government to invest £1.5 billion into major infrastructure projects that will boost the economy and create new jobs.
The CBI says that the government should back the construction sector, by introducing measures including investment tax breaks, and business rate reductions.
Such measures will encourage further financial investments and pave the way for more employment opportunities in the trades.
But the CBI chief also called for a focus on projects such as the Thames Tideway “super sewer” tunnel in London and the Hinkley Point nuclear power station in Somerset to give the economy an ‘Olympic-style shot’ in the arm.
“We need an industrial Olympics, with big schemes which can make a real difference,” Mr Cridland told the Evening Standard.
And in the Guardian he is quoted as saying: “Kennedy said at the start of the 60s that America would put a man on the moon by the end of the decade and it did, even though sadly Kennedy was not around to see it. We need the sense that we are just going to do these projects.”
Mr Cridland highlighted the need for improvements in the UK’s rail and road networks that are vital for strong economy and future growth.
Deputy Prime Minister Nick Cleg has announced an investment of £1 billion under the Regional Growth Fund which will kick-start 130 projects across England.
The Government has estimated that today’s latest round of spending could create 240,000 jobs, many of those in the building construction industry.
The fund will help manufacturing firms, small businesses and local partnerships to expand their operations, create new jobs and stimulate economic growth.
Deputy prime minister Nick Clegg said: “This £1 billion boost for growth in towns and cities across England is creating jobs that will last in the parts of the country that need it most.
“In tough economic times the Regional Growth Fund is good value for taxpayers’ money – this £1 billion round of the fund is pulling in £6 billion of private sector investment.”
CBI chief policy director Katja Hall said: “The Regional Growth Fund is helping to meet businesses’ needs for growth capital up and down the country, enabling the successful companies to get projects off the ground.”
Commenting on the new initiative, business minister Michael Fallon, said that this is a significant investment which will help different sectors and provide strong economic boost for businesses across the country.
Mr Fallon said: “The selection process has been very fast – from companies applying to allocating funds in only five months.
“So we are keen to get a move on which is why this time, those selected have now only three months to agree final offers, and three months to complete due diligence. We want to ensure good value for the taxpayer and to get these projects started as soon as possible.”
The UK Green Building Council (UKGBC) has announced the launch of a new project that will kick-start the Green Deal and creates new jobs.
Speaking alongside climate change minister Greg Barker at the Conservative Party conference in Birmingham, UKGBC’s chief executive Paul King welcomed the implementation of the scheme and outlined its potential for stimulating economic growth.
Mr King praised the Government’s commitment to the scheme, but warned that it needed adequate support to accelerate the level of uptake and implement its objectives.
He said: “The Green Deal still has the potential to be truly revolutionary in driving mass home retrofit. This new market could, if nurtured properly, create jobs, stimulate economic growth and protect consumers from ever-rising energy prices”.
Diana Montgomery, chief executive of the Construction Products Association, which is supporting the new project, said that despite the strong industry support for the Green Deal, more needed to be done to encourage households to take it up.
Dr Montgomery said: “Collaborating with the UK-GBC on this Green Deal Task Group project will help us to ensure that we can help Government effectively navigate the options they have available to them for capitalising on that opportunity.”
Incentives to be included:
- Stamp duty banding/rebates
- Council tax banding/rebates
- Energy efficiency feed in tariff
- Subsidised interest rates for Green Deal
- Low interest loans (outside Green Deal)/ Green mortgages (underwritten by Government)
- Lump sum grant/payment (cashback/vouchers)
- Progressively tightening minimum standards, inc. extending to owner-occupied sector
- Salary sacrifice (tax free scheme) through work/tax credits
- VAT cut extension to a wider range of measure
“The CBI is urging the government to get its act together and accelerate infrastructure investment”
The CBI Director General, John Cridland, has urged the government in a Financial Times interview to speed up the implementation of its plan for economic growth by accelerating housing and infrastructure projects across the UK.
The head of Britain’s top business lobbying organisation criticised the government over some delays in road improvement plans and the failure to agree renewable energy subsidies, which according to the CBI are vitally important for boosting economic growth.
“I think it is really disappointing how long it is taking to get momentum and urgency into the growth plan.” The Director General told the Financial Times.
Meanwhile, CBI Director for Business and Environment, Rhian Kelly launched, Creating Britain’s future, a new campaign for the UK’s Contractors Group, highlighting the crucial role that the construction sector plays for the creation of new jobs.
Ms Kelly said: “Our analysis shows that the construction sector has the potential to create 215,000 jobs across the UK and throughout the supply chain.
“It is more important than ever that we recognise the role of construction, both as a catalyst for local job creation across the UK in the short-term, and as the lead mover in the £250bn infrastructure renewal needed to underpin economic growth in the long-term.
“To get spades in the ground on infrastructure delivery, there must be an urgent focus across the UK on bringing forward repair, maintenance and improvement projects, for example on roads, to deliver immediate and tangible results in terms of local jobs and growth.”
Do you share the view of the CBI about the huge potential for growth and the creation of new jobs in the construction industry? How viable do you think is this statement for your business?
Business leaders at the Confederation of British Industry (CBI) have called on the government to bring forward a higher level of investment to the construction sector in a bid to stimulate the building engineering industry and create hundreds of thousands of new jobs.
In a report published by the CBI, it has become clear that construction businesses want to see more funds for repair, maintenance and improvement works which will create jobs and stimulate economic growth.
The report says: “The government has a ready-made mechanism to tackle the current activity gap and create jobs in the immediate future by stimulating repair, maintenance and improvement (RMI) work.
“RMI work can deliver jobs quickly on the ground across all regions, including creating openings for unemployed young people as its nature offers ‘hands-on’ jobs suitable for school-leavers.
“In addition, RMI projects generally have the advantage of shorter procurement timescales.”
The CBI is also calling on central and local government to “ensure that existing and planned RMI schemes such as the Priority School Building Programme and Green Deal are swiftly and competently delivered.”
The report states: “Developing more specific pipelines of construction work (for three to five years ahead for example) would help attract private sector investment locally and support the creation of local construction jobs.
“Knowing what’s around the corner in any given location would enable firms of all sizes across the supply chain to better identify, prioritise and plan their investment, striking up constructive dialogue with local stakeholders early on.”
The CBI’s Action for Jobs Progress Report also calls the government for fresh action on:
- Aligning school funding with employment as well as academic outcomes
- Boosting school-business links in every local community with local organisers in every area making it easier to get involved in leading schemes
- Making work experience a statutory right for 14 to 16 year-olds
- Investing more in apprenticeships – both at a higher level and in pre-apprenticeship courses which help young people without skills get on high-quality training schemes
- Introducing a comprehensive ‘readiness-for-work’ assessment at Job Centre Plus, to help people focus on returning to work.
What is your reaction to the CBI’s call for a further investment in the construction industry which will prove vitally important for the creation of new jobs? Do you agree with UK’s top business organisation?
The Confederation of British Industry (CBI) has urged the government to boost economic growth by giving a greater emphasis on infrastructure projects in the UK.
In a new report published today, the CBI has recommended to the Treasury to enhance the credit rating of government construction schemes and raise public funds that will secure private business investment, unlocking billions of pounds to the UK economy.
According to the CBI Director-General, John Cridland, infrastructure investment will offer the UK a sustainable growth development that businesses need.
Mr Cridland said: “As this report makes clear, if we want to see the billions of pounds needed to upgrade our ageing infrastructure and secure jobs and growth for the long-term, the Government must make smarter use of limited public finances. By underpinning and lifting the credit rating of certain infrastructure assets, it can make them less risky and more attractive to investors.
The CBI says that harnessing just a 1 per cent increase from the UK’s pension fund will give a ‘vital boost’ to the UK’s underfunded infrastructure networks and make them more attractive to investors.
Do you welcome the recent report by the CBI that urges the government to make significant improvements to infrastructure schemes in the UK? Share your thoughts by leaving a comment below or adding your voice on our Facebook Page:
The business lobby group is advising the government in a new report today, “Minor measures, major results – Fine tuning the major infrastructure planning system”, to make further improvements to large infrastructure projects and ease the pre-application process of planning and construction work for UK businesses.
The CBI is also urging the government to simplify non-planning consents and allow developers to train case workers who will participate and give advice to applicants at pre-application stages prior to construction work.
The CBI believes that measures for improving transparency, encouraging proactivity in case workers and developing the relationship between planners and businesses will help economic growth and return investors’ confidence.
Deputy Director-General at CBI, Dr Neil Bentley, approved the pro-business measures the government has taken in recent years to encourage economic growth, but he said that more decisive action is needed to help major infrastructure projects in Britain.
Mr Bentley said: “Businesses approve of the government’s reforms to our major infrastructure planning system to streamline planning decisions, but it’s vital we don’t lose momentum while these significant changes take hold. Too many applications are still at the initial stages at a time when we need major investment in our infrastructure.
“We’re suggesting ways the government can fine-tune the system to spur on much-needed new infrastructure such as, energy plants, railway lines, airports, roads, ports and waste facilities.
“Investing in major infrastructure projects will bring big rewards for our economy, with new jobs and growth. But investors both at home and abroad must have the confidence that the planning system will deliver timely decisions, so the government needs to act now. Waiting for a much fuller review in 2014 would be a lost opportunity.” – added Mr Bentley.
What is your reaction to the proposed measures by the CBI to improve major infrastructure planning systems? How would that help your business and boost economic growth? Share your thoughts by leaving a comment on Train4TradeSkills’ Facebook and Twitter pages:
Although the building construction sector remains one of the most stable industries in the UK, the CBI thinks greater investment is needed for infrastructure projects to encourage continual growth and business confidence.
The CBI has proposed a number of measures for the government as an opportunity to provide real boost for private sector investments in infrastructure schemes and give more support to small and medium businesses.
General Director at CBI, John Cridland, explained that the government should use Chancellor’s budget statement next month to deliver significant financial stimulus to make mortgages more affordable to the housing market.
Mr Cridland thinks future growth through reforms of the UK’s tax system is essential for businesses to invest in Britain. He is calling on the government to make some changes into the current system which will create new opportunities for growth.
Mr Cridland highlighted the significance of infrastructure investment as one of the most important priorities which the government needs to support in order to encourage industry’s growth and create permanent jobs.
He said: “Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs.”
Do you agree with the CBI that the infrastructure industry is a key factor for economic growth and creating new jobs? Share your thoughts by leaving a comment below: