The UK should be confident in its business future
With the UK just days away from leaving the EU, one might think it would be a major talking point at the World Economic Forum in Davos. However — and perhaps refreshingly — conversations are largely focused on other geopolitical issues, those fundamental to our future global society, like inequality, societal divisions, and the climate crisis.
While there are differing views on what the next 12 months might hold, chief executive officers (CEOs) around the world are fairly united in their concerns and priorities.
Their insight is more relevant than ever as the UK determines its future path, making our latest CEO survey one of the most important in its 23-year history.
What’s striking in this year’s survey —especially given the current political environment — is that the UK has become more attractive to some of our nearest European CEOs, including France and Germany. We’re also the fourth most important territory in the world for growth.
These upbeat results are a helpful reminder that the UK is a relatively stable place in a world facing big challenges, and gives a timely sense of perspective.
The UK has other great credentials. These obviously include natural advantages such as an unbeatable
location between the US, Asia and the rest of Europe and other strengths that have evolved overtime such as
our fair and trusted legal system and business culture.
While our research shows CEOs worldwide predict slower global economic growth over the next year, the UK is
in a strong position for the longer term if we can capitalise on our key characteristics.
Maintaining an open and globalised economy is crucial, as is an effective tax system. For example, it’s quicker and easier to file taxes here than in most parts of the world, but there’s clear scope for improvement through further digitisation.
Digitisation can also make our transport system more reliable, improve our productivity, make our cities greener, and so on.
But only if people have the right skills to innovate and reap the benefits.
CEOs globally say the availability of skills is the number one threat to their business and it’s a top three concern for UK CEOs.
Despite this, only about half of UK businesses at present are focused on improving the skills of their existing workers.
The UK is well-placed to take a lead, building on our eminence in education and our strong tech sector.
It requires more collaboration between businesses and educators, to map out and nurture the skills needed for a more automated world.
Moreover, policies and incentives are needed for regions most affected by automation — to help new types of business to grow, workers to transition, and small and medium sized businesses to support them.
Far more than just helping the UK become more attractive for investment, this is a societal obligation so that swathes of people don’t get left behind. But in addressing the challenge, we’ll boost the nation’s reputation as a fair society where people want to work and do business.
This gets us back to the agenda at Davos — and how we can all help solve the bigger societal problems of the day such as climate change.
This soared up the agenda for UK CEOs we interviewed this year, polling higher than concerns over populism, terrorism and access to captial. Having committed to achieving net-zero by 2050 the UK has a powerful incentive to help lead the charge and share its know-how.
So while it would be naive to suggest the coming years won’t be challenging, if we can focus forwards and outwards the UK has every reason to be confident in its long-term future — our survey results suggest CEOs across many parts of the world would agree.
Kevin Ellis is chairman and senior partner of PwC UK