Last month, the Institute of Export and International Trade (IOE&IT) issued a set of requests for government in advance of the recent Spring Budget, where it set out some of the priorities for members and proposals for policies to boost UK firms’ international trading activity.
But what do other industry bodies want from government, and how could their policy ideas affect trade? The Daily Update took a look at some of the proposals put forward in recent weeks.
Tech UK
Tech UK published its ‘Seven tech priorities for the next government’ report on Monday (11 March), informed by polling from Public First.
Among those priorities is a call for a “new approach to trade and technology” in the context of “a more fragmented global economy”. The growing risks of “disruptions, risks in global supply chains and the erection of new trade barriers” must be mitigated, the body says, by making the UK a “standard-bearer for digital trade”, echoing suggestions from IOE&IT.
Recent legislation in the US and EU aimed at tackling the West’s economic exposure to geopolitical tensions, particularly in technology manufacture, have been hampered by a “lack of coordination [resulting in] potentially costly competition between allies”, the report says. It points to tensions between the US, with its Inflation Reduction Act, and the EU, with its Net-Zero Industry Act.
“New partnerships”, aimed at securing tech supply chains, coupled with a world-leading approach to digital trade, could help the UK and its tech sector in “navigating this new world”, it says.
The government should review and prioritise target countries with which to agree deals on the digitalisation of trade and implement targeted trade missions for countries of opportunity in technology, as exemplified in the recent UK-Australia Fintech Bridge programme.
Make UK
Make UK, which represents UK manufacturers, made the case for an “explicit target for industry to account for 15% of GDP” at the end of last month, in advance of last week’s Spring Budget.
Speaking at the industry body’s National Manufacturing Conference in Westminster, CEO Stephen Phipson said:
“The lack of a modern, long-term, robust industrial strategy is the UK’s economic Achilles heel. Every other major economy has a long-term national industrial plan. As such, the UK is an outlier and if we are to help tackle our regional inequality and improve our competitiveness on a global stage, we need a national industrial strategy with cross party consensus as a matter of urgency. One that survives elections and parliamentary cycles and builds international confidence.
“Overall, such a strategy would have the aim of growing the contribution of manufacturing to GDP from 10% to 15% and so I am calling on all political parties to commit to this in their manifestos.
“Some may see this ambition as fanciful but, as globalisation shifts, why not aim to produce more here so we are less dependent on others for everything from our food to our energy and security?”
Phipson argued that moving towards such a target “would help to tackle regional inequality and pay for public services we all want to see” by adding £150bn to the UK economy. He said infrastructure spending should be raised to meet the OECD average, calling for a rejection of existing planning rules and government fiscal rules, as well as renewed focus on net zero and energy security.
Other perspectives
Chief executive of the Business Travel Association, Clive Wratten, criticised the rise in Air Passenger Duty that was included in the Spring Budget, stating it would “hinder growth for small and medium-sized enterprises (SMEs) through limiting international collaboration opportunities”.
He contended that it would negatively affect “charities, academics and researchers alongside businesses of all sizes combatting rising costs in every area”, and added:
"There is no mechanism for ensuring the monies from this tax will go into innovation in the airline sector, nor into sustainable aviation fuels. This is therefore just another tax on British businesses.”
Skills, meanwhile, are a central focus of IOE&IT’s requests for government. EngineeringUK’s head of policy and public affairs, Beatrice Barleon, said the organisation welcomed the government’s “commitment to invest in crucial sectors, such as engineering and technology”, particularly in SMEs.
But she highlighted the need for a stronger programme of upskilling an education in technology and other advanced sectors, stating:
“We are extremely disappointed that there is no mention of the need to invest more and focus on skilling the future workforce.
“We renew our ongoing call for the government to develop a clear and properly funded STEM skills plan. This should include investment in careers outreach and education, apprenticeships for young people aged 16-19, and commitment to sustaining existing funding levels for STEM teacher professional development.”