Trade Association Update: November

We also can’t forget that markets are also keeping a close eye on our growth prospects.

To close the budget deficit, the Government has three levers to pull: cut spending, raise taxes or achieve higher economic growth. But all three must be carefully balanced – neglect growth and the economy will be caught in a doom loop, where low growth leads to more spending cuts and tax rises.

We at the CBI have a clear vision to make sure we get it right in this precarious situation. First, we need to see a clear fiscal rule to make sure we can stabilise debt to GDP by the end of year five. We can’t run the risk of going too far, too fast – or we might stifle growth. But it’s also crucial to resist the impulse to cut capital spending in order to avoid day-to-day cuts.  Thirdly, we have to focus on taxes that help business investment. Business rates and other pre-profit taxes are by far the biggest hurdles to investment. Allowances like the super deduction can make an instant difference, particularly taking into account the announced increase in corporation tax. And lastly, supply side reforms (such as on planning for onshore wind) can’t be discarded – especially at a time when public money available to invest is restricted.

It’s clear that we now have to take advantage of more cost-free growth opportunities available. The most critical roadblocks to growth in the UK right now are labour and skills shortages. Our priority should be to reform our immigration system to get the skills firms need to pursue stalled investment plans. In the long term we need a clear and ambitious skills strategy, including reforming the apprenticeship levy, to support firms in staffing critical roles and upskilling workers here in the UK.

We have to be frontrunners when it comes to net zero. Growing our green economy is a massive opportunity. We have the chance to attract investment and support firms in developing renewable technologies, leading the way on decarbonisation and sustainability creating jobs and growth.

There is no doubt that we can get back to a strong growth trajectory. In our plan for the economy – Seize the Moment – we outline £700bn of prizes available to UK firms. Before firms can grasp these opportunities, we need to see a return to consistent macroeconomic stability. In November, the Government must consolidate confidence and deliver productivity-enhancing reforms.

I look forward to seeing many of you at our Annual Conference in November where these topics, and more, will be on the agenda. If you haven’t registered yet… why not!?

Welcome to the CBI!  We are delighted to profile our newest CBI member, the Horticultural Trades Association.

Jennifer Pheasey, joined HTA as Director of Public Affairs in September 2022, from automotive trade body SMMT. Jennifer heads up the Policy, Public Affairs and Media function

The HTA was founded in 1899, and now has 1500 members from the UK environmental horticulture sector, from growers to garden centres to landscapers. These businesses are situated across all four UK-nations, and join HTA for its expertise, advice, policy support, training and also the National Garden Gift Voucher scheme.

What are the biggest challenges and opportunities for your sector at the moment?

Gardening, plants and the value of green spaces saw a significant boost during the pandemic and lockdowns, and a clear link to health and wellbeing to millions across the nation. Securing garden retail as essential and therefore open – not least because of the products being perishable – was a significant and critical step to recognise the industry. Sustaining that momentum, recognition and support is critical for the industry and a huge opportunity.

As the original ‘green’ industry the sector can deliver green growth and a direct boost to the environment, net-zero ambitions, levelling-up and improve health and well-being. We underwrite the vast majority of the 25-year environment plan, and are currently awaiting announcements on the end-of-sale of peat for amateur use. The UK’s environmental and net-zero policy should ensure UK horticulture can play a key role and be sustainable and competitive.

As a sector which imports a significant amount, ensuring smooth processes for trading with the EU is a priority.

The costs of doing business – in particular energy, logistics and labour costs – have ramped up significantly. This has all come in a year of drought, ongoing trade impacts and labour and skills shortages.

What will you be working on for the rest of the year and into 2023?

HTA is continuing to ensure the role and value of UK horticulture and gardening is on the radar of politicians and policy-makers – whether from an environmental policy or green growth perspective. This is not just in Westminster, but with policy-makers in the devolved nations too. Following consultation on the end-of-sale of peat, we hope to see constructive engagement and support on peat alternatives.

The HTA’s cost of doing business campaign will continue – communicating sector needs to government and helping members with advice and support on issues such as energy costs.

We work closely with Defra, HMRC and DIT on trade and import developments to keep plants moving safely, swiftly and securely across borders.

Water use will continue to be important with expectations of a dry winter meaning conservation, drought and the critical impacts on sectors like ours will go into 2023 and beyond. HTA will represent the sector as well as support members to adapt, have new technologies and share best practice.

In January, HTA will also see a new CEO take the helm, I’m excited to work with Fran on our future strategy.

Tell us why you have joined the CBI?

We hope to be able to bring awareness, knowledge and get-value from the CBI on all issues relating to our sector. I previously worked closely with colleagues across the CBI and the Brussels office and am looking forward to reengaging and joining the TA Council meetings.

Interested in being featured in our monthly update to 170+ trade association members? Let me know via email.