CBI calls for Brexit ‘unity, clarity and certainty’ from Government in 2018

CBI says that Brexit is 'only part of the picture' and that the Government also needs to focus on skills, innovation and infrastructure in 2018

In addition to Brexit uncertainty, Ms Fairbairn said that the UK is facing a skills emergency (Reuters)

The head of one of the UK’s most influential business lobby groups has launched a fresh appeal for the Government to provide clarity ahead of Brexit, ensuring that the economy can prosper despite immense uncertainty.

In a year-end letter to members of the Confederation of British Industry, director-general Carolyn Fairbairn said that firms in 2017 responded with resilience to a lack of clarity around Britain’s impending split from the EU.

Nonetheless, she added that many are suffering considerably. Investment has been postponed – in some cases even halted – and inflation of 3 per cent has bruised living standards and squeezed retailers and other consumer firms.

“International investors love doing business in the UK but end the year longing for greater clarity,” Ms Fairbairn said.

She said that she was calling for binding Brexit transition terms by the end of the first quarter of 2018, and that progress also needs to be made on a framework for a final deal that safeguards barrier-free trade between the UK and the EU.

The director-general said that the Government needs to provide “unity, clarity and certainty” rather than “a different opinion every day”.

But Ms Fairbairn also said that Brexit is “only part of the picture” and that the Government and individual companies need to focus on other “fundamental building blocks of our economy” – namely skills, innovation and infrastructure – in 2018.

“The top priority must be the urgent transformation of our skills base. The clock may be ticking on Brexit but it is ticking just as fast in our schools, colleges, universities and workplaces,” she said.

She added that the UK is facing a skills emergency and that, while weaknesses in supporting young people entering the labour market have existed for years, the changing nature of jobs and skills means the situation has turned critical.

“The CBI will be campaigning for reformed careers advice in schools and to ensure every young person gets quality guidance and at least four interactions with working life by the age of 16, in every nation of the UK,” she said.

On innovation, Mr Fairbairn said that going forward “action is needed to ensure companies adopt tried and tested technologies that will move the dial on productivity”. She said it was also crucial that progress is made on major infrastructure projects – like Heathrow, Hinkley and High Speed Rail – in 2018, to prop up local economies.

The CBI represents around 190,000 businesses of different sizes across the country. Members of the CBI collectively employ around 7 million people or around a third of all private sector employees.