Conservative Party Conference: CBI activity roundup

With a new government taking office in July and a new cabinet being formed, the CBI used the Conservative Party Conference in Manchester to strengthen relationships and discuss policy announcements. The CBI’s senior team met key political stakeholders, responded to policy announcements and outlined business priorities ahead of a looming general election.

Listen to the CBI’s podcast on the key takeaways for business from Conservative Conference

Recognising the need for partnership to tackle climate change

Focusing on infrastructure, CBI Director General, Carolyn Fairbairn, met with Grant Shapps, Secretary of State for the Department for Transport, to discuss a wide range of topics including HS2, Net-Zero and Brexit.

Following the recent announcement to review the HS2 project, Mr Shapps highlighted the need for an honest appraisal of costs and benefits of the project. Carolyn said she understood the need to ensure value for money is delivered on HS2 but emphasised the clear message from business - back it, build it and benefit from it. Carolyn also pointed out how the project would help the UK’s reputation on the global stage. Mr Shapps recognised the need for the business perspective to be heard on HS2.

Mr Shapps also discussed the government’s net-zero target and how working in partnership with business was key. He highlighted his department’s work in this area before Carolyn flagged the need for cross party agreement on climate change.

Finally, Mr Shapps and Carolyn discussed Brexit. The Transport Secretary said despite voting remain, he felt that uncertainty is damaging the UK’s economy. On this point, Carolyn identified the difference between short-term disruption and the medium to longer-term economic damage a no deal Brexit would create.

Getting people into work and unlocking regional growth through devolution

Carolyn also met with another new Secretary of State, Thérèse Coffey who heads up the Department for Work and Pensions. Ms Coffey started the meeting by emphasising her background in business. She then went on to discuss her priorities including her focus on getting people into work and progressing.

Ms Coffey also discussed regional inequalities and how business and government can work in partnership to encourage growth in every region of the UK. In response, Carolyn talked through the CBI’s new report Powering Up Places: Unlocking regional growth through devolution, which sets out how to restart the devolution journey to maximise the potential of all regions in England.

Read Powering Up Places: Unlocking regional growth through devolution

Finally, Ms Coffey asked Carolyn for her thoughts on the apprenticeship levy and whether it should be scrapped. Carolyn highlighted some of the weaknesses with the levy but emphasised that business and government should work together to adapt the levy and make it work for firms.

Business day dinner

Away from meetings, and following the Chancellor’s speech on the Monday of conference, Carolyn attended the Business day dinner where she sat alongside the Chancellor of the Exchequer, Sajid Javid.

The CBI has enjoyed a good relationship with Mr Javid in his previous cabinet positions and the dinner was the perfect opportunity to discuss his conference announcements as well as the economic impact a no deal Brexit would have on the economy.

On the Chancellor’s conference announcements, Carolyn praised investment in key infrastructure such as the roll-out of full-fibre broadband but highlighted the importance of the Low Pay Commission (LPC) when it comes to determining the National Living Wage (NLW). The Chancellor confirmed that the NLW would still be overseen by LPC and explicitly subject to economic conditions.

On Brexit, Carolyn highlighted business concerns that failing to secure a deal with the EU would cause a serious rupture for the economy. She emphasised the implications it would have for the investments he announced.

Unlocking enterprise

Alongside these private meetings, the CBI also hosted a conference fringe event and business reception, both in partnership with BVCA.

The fringe event assessed the need for business and government partnership and the importance of regional development. It featured speeches from Mayor of the West Midlands, Andy Street, BVCA Director General, Tim Hames and Carolyn.

Read more about the CBI’s Conservative Party Conference fringe event here.

Elsewhere, at the CBI’s business reception, Secretary of State for Culture, Media and Sport, Nicky Morgan spoke to a crowded room about business being the engine room of the UK’s economy.

Ms Morgan highlighted that the voice of business is absolutely being listened to and how the government is keen to work with business to ensure firms are the driving force of the UK Economy. Finally, she touched on the Chancellor’s announcement on delivering gigabit connectivity by 2025 and emphasised this can only be done in partnership with business.