This week The Industry Forum assembled a stellar panel to discuss the key question, ‘Does Rachel Reeves’s 2025 budget provide a springboard for growth?’ Leading the discussion were Dr. Jeevun Sandher MP, Parliamentary Private Secretary for the Department for Business and Trade and Trade; Vicky Pryce, Chief Economic Adviser and Board Member at the Centre for Business & Economic Research (CEBR); Wes Ball, Senior Vice-President at Edelman, and Andrew Smith, Chief Economic Adviser, Industry Forum. The roundtable was hosted by the Railway Industry Association and guests were welcomed by James McGowan, Policy and Public Affairs Director at RIA. It is clear that increasing taxes to pay for restoring public services does put a significant load on the economy, but economics is not good at predicting the financial benefits of reducing, for example, chronic problems in access to healthcare, housing affordability and child poverty. It is also possible that the relative stability of the UK economy compared with the US and some mainland European states, and its lighter regulation than the EU may benefit the UK, despite not balancing the long-lasting damage of Brexit. The government’s clear industrial strategy will help companies plan and will increase their confidence in making investments. Inevitably from a gathering of business people some good ideas surfaced. These included greater powers for city/regions with Manchester/Liverpool a prime example; deploying some surplus pension funds for infrastructure investment, and also recognising the potential of our world-leading universities to generate income as well as innovation and research.

The Industry Forum recently addressed the important question of whether pension funds can help finance the essential renewal of UK infrastructure. Lauren Edwards MP, who has Bank of England and HM Treasury experience, led a wide-ranging discussion with professionals from the insurance, finance, construction, energy, telecoms, legal and advisory sectors. Matt Connell, Public Affairs Director at the Chartered Insurance Institute welcomed members and guests to their offices in the iconic Walkie Talkie building, in the City of London. There was recognition that getting the right formula could unlock significant investment but that obstacles need to be overcome. Government action to provide incentives for investment rather than rules mandating investment, would be preferred. To minimise pensioner risks it would be essential to avoid some of the mistakes previously made in setting up unduly expensive public-private partnerships. This would require good dealmaking and contract management skills to balance the strong commercial instincts of contractors. Pension funds not familiar with buying or owning infrastructure assets, could perhaps work together with specialist infrastructure investors to provide matched funds in the way that some development banks operate. This is clearly an area of a big potential to help the government’s growth agenda and a subject to which the Industry Forum will return.

The Industry Forum held a brilliant roundtable on the crucial topic of ‘Delivering the homes that the UK desperately needs.’ Florence Eshalomi MP, Chair of the Housing, Communities and Local Government Select Committee, introduced the topic and led a wide-ranging discussion at the City office of NHBC. Kim Bromley, General Counsel and Director of Government & External Affairs at NHBC welcomed guests including insurance specialists, house builders, architects, planning lawyers, trade associations and others. Everyone present recognised the urgent need for more homes and the enormous task the government has set itself to build 1.5m new houses in the current term. An additional critical current problem is the cost and social damage being caused by the large number of children in temporary accommodation. Some of the other issues discussed included the skills shortage, the mismatch between infrastructure delivery and new housing developments, unintended consequences of net zero targets, and the critical need for HM Treasury to balance short term investment costs with the associated longer term benefits. There was some feeling that the government still needs to improve cross-departmental cooperation for its major missions like housing - an agenda item for Darren Jones MP, Chief Secretary to the PM, perhaps? We couldn’t solve all the problems of UK housing in one meeting and will be holding further meetings on the key obstacles and bottlenecks that need to be overcome by government and industry working together.

Widening our horizons The Industry Forum discussed UK ‘Policy Priorities for the Middle East, Afghanistan and Pakistan’. Our expert guide to this vast subject was Hamish Falconer MP, Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan who was elected MP for Lincoln last July. Prior to this he worked in Britain’s Diplomatic Service, the Foreign Office’s Terrorism Response Team, the Department of International Development and the National Crime Agency on a whole range of problems relevant to his current brief. The meeting was hosted by the Iraq Britain Business Council and chaired by Rod Dowler. Ashley Goodall represented IBBC at the meeting and he outlined their work and the buoyant state of the Iraq economy which continues to offer big opportunities for UK firms. Discussion ranged broadly over the many serious conflicts in the region and also its great economic depth and potential. Perhaps, when the Ukraine and Gaza conflicts are finally settled, a new more stable regional architecture will emerge, but meanwhile, it is good to know that FCDO Services is closely in touch with developments and also working to actively promote UK commercial interests and companies in the region.

The key to the success of the government’s ambitious plans for the economy and improved public services, is the supply of skilled workers for eight key priority industrial sectors, and public services, particularly the NHS. So, the Industry Forum was delighted that Baroness Jacqui Smith, Minister for Skills was able join us today to lead a roundtable on, ‘Fixing the skills crisis.’ The meeting was hosted by Checkatrade, and Benjamin Bell their Director of Corporate Affairs welcomed the minister and guests to the meeting at their Kings Cross HQ. It was clear that the skills strategy is a vital component of the soon-to-be-revealed industrial strategy which will encompass the delivery of net zero emissions, increased defence spending and major infrastructure investments - all programmes that will need specialist skilled workers, and provide well-paid jobs. A previously piecemeal approach to skills which confused many business people is being transformed into a framework of initiatives which will aid understanding by young people entering work, and businesses that need predictability of skilled labour supply in order to justify investments.

With so much political attention currently on manufacturing and logistics, The Industry Forum, this week, turned its attention to ’Current issues for UK financial services.’ To survey this vast topic, we invited new MP for Rochester and Strood, Lauren Edwards, who trained at the London School of Economics and Political Science (LSE), and has worked at the Bank of England and the HM Treasury, to lead a round table for members and invited guests. Lauren concisely summarised what is happening in financial services, particularly in terms of government actions to ensure the proportionate level of regulation in banking, insurance and investment. Questions raised in the Q&A included the need for a longer-term Treasury planning horizon, the risks and opportunities arising from crypto currencies, the likelihood of a Bank of England issuing a digital currency, and the continuing need to help small businesses get enough credit to maintain and expand their activities. A key theme was the need to simplify the post 2008 banking crash regulations without reducing protections and thus to enable the strong UK financial services sector to do its job of competing in international markets and supporting the UK economy.