In an opinion piece in The Times PA adds to the debate on how the UK government can restore sustainable economic growth
Colm Reilly, head of PA’s government practice, has written an article in The Times arguing that the government needs to balance the focus on cost cutting with greater attention on achieving sustainable economic growth. To be fit for purpose, the economic recovery needs to address both aspects.
The article, in The Times business pages, gives an analysis of the strengths of the UK economy. Colm says: "The UK economy does still have real strengths. For example, it has managed to increase the number of foreign direct investment (FDI) projects in the past three years. However, our research indicates that the UK’s share of the jobs created by all FDI projects in Western Europe has declined in the health, bio-pharma, environment and ICT sectors. These are vital high-tech areas, with potential for growth, where it is crucial that the UK retains its leading position."
Colm goes on to explain PA’s view that the government should create grids, or networks, where knowledge and resources can flow in any direction: “Companies could quickly locate their ideal partner and then share resources and expertise. This could range from informal contacts to outsourcing to joint ventures. Members of the grid could agree to give one another access to their know-how, helping them to make informed decisions, rapidly and with less risk. Accessing the right grid could open up virtually unlimited opportunities.
“We now need to sharpen our focus on the national assets we have and capitalise on their inherent strengths, reinforcing their ability to compete on the world stage in a sustainable way. This will be essential if we are to improve our economic performance; pay off our debts; and ensure the UK is leading global economic growth rather than struggling to catch up.”
The article concludes that the new government, whatever complexion, will need to create policies which balance cost cutting but continue to have the necessary attention on how the economy can grow on a sustainable basis to ensure that the UK is leading global economic growth, rather than struggling to catch up.
You can read Colm’s article in full here.
