A fair revival of the UK economy means ‘not failing’ the next generation, according to the Confederation of British Industry’s (CBI) Director-General, Dame Carolyn Fairbairn.
She suggested that a New National Commission for Economic Recovery is needed to bring government, business and wider society together in order to lead a sustainable, fair revival of the UK economy. According to Fairbairn, “the promise of the next generation can only be protected if government, business and the wider society work together to create an economic revival plan”.
The experience of the pandemic shows “beyond doubt” that national unity is the only way to rebuild the UK economy and “tackle the totemic issues of our day”, she pointed out.
AVOIDING ‘LOST’ COVID GENERATION
“Young people are amongst the hardest hit by the devastating economic impact of Covid-19. They face most risk of losing their job, find it hardest to move into new jobs, and are the most affected by long periods of unemployment,” pointed out Fairbairn. “They are also facing serious interruptions in their education and training. Seven in ten young people feel their life is on hold, while anxiety and depression are on the rise. Urgent action is needed to protect their futures and prevent a lost Covid generation.”
She has therefore urged business and government to act boldly and quickly to create an economic revival plan – and not wait for the pandemic to pass, before taking action.
Image credit: Alexandra Koch, Pixabay
ECONOMIC REVIVAL PLAN
Commenting on the urgency of the economic challenge ahead, Fairbairn stated: “Just as Churchill commissioned the Beveridge review at the height of the Second World War in 1942, creating the welfare state and supporting several decades of sustained growth, it is now down to the leaders of today to create a revival plan from this historic crisis. The plan should prioritise creating jobs, training and opportunity, particularly – though not only – for young people, through practical partnership. Government alone will be too slow and lack scale; business alone will be too fragmented.”
She has recommended the creation of a new National Commission for Economic Recovery. This commission will bring together business, government, unions, education and other parts of civil society. The Commission should have clear targets and a bold remit to create new approaches for a fair and sustainable revival of the UK economy over the next 12 months, added Fairbairn.
BUILDING BACK BETTER
The top priority for the National Commission for Economic Recovery is “job creation”, stressed Fairbairn. “The government’s commitment to ‘Build, Build, Build’ provides a good starting point. Many firms are ready to invest, hire and grow, from green retrofitting of homes to accelerating the digital economy. But commitment must be turned into action. Economic revival should aim to build a better UK economy not just recreate the status quo. It should target those most in need and support diversity, the UK’s net zero ambition, and levelling up communities. This is what Building Back Better needs to mean in practice.”
She also pointed out that UK business is ready to help lead this revival. “The Government does not need to go it alone. UK firms will bring investment, ideas, energy and scale. The Commission can create the focus and momentum for practical and fast action,” Fairbairn concluded.
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