Talking Point: Adapting to a changing landscape
From farmers’ protests to business growth warnings, the Government’s autumn Budget has stirred plentiful reaction. Labour says its blueprint will provide crucial blocks to help rebuild an economy left damaged by a series of short-lived Conservative regimes. But is it making the right moves? Will the party’s fiscal formula lay the foundations it says the country needs, or is Westminster’s latest administration focusing on the wrong areas?
January 17, 2025
Graham Melroy
Business development director
T12 Engineering
We need more than political slogans
Raising employers’ National Insurance contributions and the National Minimum Wage directly conflicts with Work and Pensions Secretary Liz Kendall’s stated goal to “get Britain working”.
The measures, while well-intentioned, risk placing undue strain on businesses already grappling with economic uncertainty.
The CBI’s warning that nearly two-thirds of firms may cut jobs or halt recruitment should not be ignored – policies must empower businesses to grow, not burden them further.
Moreover, the persistent narrative of a UK skills gap is oversimplified and increasingly outdated.
The reality is not a shortage of skilled individuals, but a disconnect in how those skills are accessed and deployed.
In 2023, 48 per cent of 25 to 34-year-olds held tertiary degrees, a remarkable leap from 30 per cent in 2000.
Yet, as an engineering firm keen to nurture talent, we find it challenging to connect with job-ready graduates.
Universities, often skewed toward partnerships with large corporations, overlook the vast potential within SMEs – a bias that stifles not only the development of young professionals, but also the growth of small businesses.
This is particularly felt in the engineering sector, which serves as the backbone of the
UK economy, with approximately 6.3 million individuals (20 per cent of the UK workforce) in engineering and technology roles in 2023.
To truly address worklessness and bolster the economy, we need more than political slogans.
Labour’s fiscal formula must foster collaboration between universities, SMEs and policymakers.
Universities should actively engage with smaller firms, providing graduates with diverse opportunities while supporting local economies.
Policymakers, in turn, must ensure their strategies do not inadvertently shut out the very businesses they aim to support.
Ultimately, rebuilding the economy demands pragmatic and inclusive approaches that prioritise genuine collaboration and equitable access to opportunities.
Without this, Labour’s promises risk becoming another chapter of missed opportunity.
Angela Carney
Managing director
Carney Consultancy
President
Northern Counties Builders Federation
We must build with Westminster
One area that particularly stood out for me is the plan to tackle economic inactivity and boost employment.
The statistics are stark, with 2.8 million out of work due to long-term sickness and one in eight young people neither in education nor employment.
The £240 million investment to address these issues, along with a national jobs and careers service and local leadership from mayors and councils, is a much-needed step toward providing opportunities and reducing inactivity.
For the construction sector, the Government’s emphasis on Skills England is a welcome initiative.
As the industry faces a growing skills shortage, with many experienced workers approaching retirement, attracting young talent is critical.
The focus on boosting skills and training could help bridge this gap, by showcasing construction as an exciting and rewarding career choice.
We must highlight the range of career opportunities available within the sector – from project management to skilled trades – and work to make the industry more inclusive, encouraging diversity and ensuring people from all demographics feel welcomed.
This is a long overdue and critical focus, and
I’m hopeful it will help transform the public perception of construction, making it a more attractive path for the next generation.
While policies like these are crucial, I also believe success comes down to mindset.
As business owners, we face constant challenges, but the ones who thrive are those with a growth mindset and the belief that we can always learn, adapt and improve.
The Government can provide tools, but we must build with them.
In the end, regimes come and go.
It’s up to each of us to decide: Will we push for growth, or will we choose to stay where we are?
The Government’s policies, especially around employment and tackling inactivity, are positive, but they can only go so far.
What makes or breaks many businesses is the mindset of leaders and whether they can embrace change and be unrelenting in their mission to grow.
Only time will tell if Labour’s strategy has a positive impact but, one thing is certain, business moves faster than policies.
Together, we can find solutions to complex issues that threaten the economy via knowledge transfer and collaboration between sectors and wider industry.
January 17, 2025
- Ideas & Observations