The Big Question: July ’24

GRAEME CARTER – Founder and owner, Shred Direct

I’ve always believed small businesses are vital to the UK economy, and the G7 prediction only amplifies their importance.

The new Government must find ways of stimulating the economy, and I believe helping small and medium-sized businesses will be a huge step forward in improving the potential outlook.

Small businesses need to be able to borrow money to grow, and the Government can help by making it easier for companies to get loans from banks and making the bureaucracy simpler when applying for grants and other assistance.

Westminster can also make it easier for small businesses to gain access to public sector contracts.

There is a huge amount of potential work out there, across areas such as the NHS, higher education and local government.

Why should these contracts go to the big boys without small companies even getting a look in?

They also need to look beyond the here and now.

The Government needs to put more thought into business studies in schools and colleges.

Our children are going to be the entrepreneurs of the future, so why not give them the knowledge they’ll need to start building their own companies in years to come?

DONNA JAMES – Research director, Populus Select

The UK economy has lagged behind other G7 nations for nearly 15 years.

Westminster must focus on boosting investment, which has lingered around 17 per cent of GDP, below the G7 average of 20 to 25 per cent.

Emphasis should be placed on green technology, strategic national industries like energy, AI and creative services, and nurturing homegrown talent.

Low productivity, driven by insufficient investment in corporate skills and people management, requires a shift from short-term to long-term thinking.

A pro-investment tax regime is essential to breaking this cycle.

The UK Infrastructure Bank needs more capital and staff to match its European counterparts.

By increasing funding and resources, it can support promising university spin-outs and private sector start-ups, particularly in green tech, helping the transition to net-zero.

Fiscal measures should align with monetary policy; tax reductions should only occur when monetary policy eases.

A reformed tax regime, which taxes inherited wealth more than income, can address the income gap and incentivise training and talent development.

Without these changes, the UK risks continued economic stagnation.

Proactive policies are crucial for fostering sustained economic growth and innovation.

It’s time for Westminster to act decisively and ambitiously to secure the nation’s economic future.

GILL HUNTER – Managing partner, Square One Law

To instigate real and positive change, there needs to be less focus on headline-grabbing side issues and a concerted effort to deliver genuine impact.

Many senior politicians don’t like to speak of it, but Brexit is one of the most significant factors holding us back.

Leaving the EU has led to challenges and additional costs for many businesses.

Securing a fast, effective solution, which forges better relationships with Europe and frees up businesses to resume more commercially-viable trade, has the potential to provide a significant boost to the economy.

Nothing grows without an investment – whether that’s an investment in care, attention, time or money.

We know the digital industry has potential for growth, and so funding needs to be made available to support true digital transformation, with money going directly to businesses rather than funded programmes – businesses know how best to invest to get results, they don’t need intermediaries.

And attract more skills; reverse the hike in the threshold for families of overseas students and workers.

There simply isn’t capacity within our own population, so let’s promote working with universities to improve the attractiveness of the UK as a study destination for overseas students.

MARK STEPHENSON – Managing director, Stephenson-Mohl Group

The UK is not generating enough wealth; indeed, Germany, France and the US all have higher rates of productivity.

There are rarely easy answers when it comes to generating growth.

Governments often understand how to bring spending cuts to fruition yet struggle to innovate, disrupt and change the policy nexus that governs growth.

As a small business owner, who has quite literally generated investment from nothing, this can be frustrating to watch.

The first bit of advice for an incoming Government is to disrupt – think about growth differently from early years education onwards.

As a country, we have never placed starting a business or becoming self-employed at the heart of our economic strategy.

If fiscal stability is the umbrella under which our national wealth, health and defence are protected, then creating a business and generating wealth should be more than just an opportunity.

Political and policy instability has crippled business investment since the financial crisis.

Policies with regards energy, infrastructure, planning and international trade have been fired off into the night air.

The result is that we are lagging behind our peers.

In short, we need stable, consistent and even boring leadership.