UK Comms Sector is vital in rebalancing the economy says CBI report

The Government needs to “think big” when it publishes its forthcoming Communications Bill, and be ambitious about what one of the UK’s fastest growing sectors can achieve according to the Confederation of British business (CBI).

In a new report, called Blazing a trail the CBI says the communications industry should play a key part in rebalancing the economy. To support this, the Government must ensure that regulation is suitable for a dynamic industry, encourage competition in the communications sector, maximise export opportunities, and ensure the UK has the infrastructure it needs to compete on a global stage.


The UK,says the report is already a major global player in communications, with a sector worth at least £50 billion a year to the economy in value terms, and the potential to grow its annual exports by more than 8.7  per cent between now and the end of the decade.

However, major economies as diverse as Singapore, Sweden and China are investing in technology to compete, and the UK cannot afford to take its hard-earned position for granted. The CBI’s recommendations include ensuring that regulations are supportive of convergence, are targeted at a clear outcome and work with the grain of consumer demand as well as a thorough review of the obligations placed on Public Service Broadcasters, to ensure that they remain relevant in a convergent digital world

It also recommends the creation of a (non-binding) advisory panel, with representatives from industries within the communications sector meeting regularly to achieve progress on difficult issues.

Dr Neil Bentley, CBI Deputy Director-General, said: “The UK is known around the world for its cultural exports, whether it’s Adele topping the charts in 18 countries around the world, or Downton Abbey being screened in over 200 territories.

However it added that the UK’s communications sector is worth much more than its high profile successes. It has the potential to grow its exports faster than most other sectors over the coming decade, and can therefore play a key role in rebalancing our economy and reducing our reliance on domestic consumption.

“That’s why we need the Government to think big in its forthcoming Communications Bill. Our communications sector needs a framework in place that will enable and encourage innovation, with a clear and consistent approach to regulations.”

Talking ourselves into recession? Two polls this morning suggest that

Well the Prime Minister certainly is with his comments to the CBI yesterday.

David Cameron,having seen the latest forecasts from the Office of Budget responsibility which will be published on November 29 alongside the chancellor’s autumn statement that there is a danger they will not be able to tackle borrowing on time as the global economy stands on the brink of a “chronic” debt-driven recession.

Meanwhile a populus poll in this morning's Times shows that 79 per cent of voters believe the country will fare “badly” over the next year against 18 per cent who think it will do “well”.

The confidence of voters in their own financial future is at its lowest ebb since the coalition was formed, according to the poll. Asked how they see themselves and their family doing over the next year, 61 per cent say “badly”, while 34 per cent say “well”.
The overall net result, a score of -27, is 9 points worse than when the question was asked in September.
It is the most pessimistic finding since July 2008, when it reached -34, on the eve of the banking crisis and credit crunch.

Another poll from the Guardian/ICM backs up the findings.That found that 57% of voters are not confident about the state of the economy,but a glimmer of hope for the coalition in that 30% continue to blame debts racked up by the last Labour government; only 24% blame the coalition's spending cuts.

CBI cuts forecasts and says we can build roads to recovery

The Confederation of British Industry (CBI) has set out what it calls Plan A+ and calls on the government to "revitalise its growth strategy"

Their report appears to suggest that the UK economy will stall by the year-end but at the same time,it warns the government against moving away from its pledge to erase the country's huge budget deficit.

The CBI cut its forecasts for British growth to 0.9 percent this year and 1.2 percent the next, from the 1.3 percent and 2.2 percent respectively it predicted in August.

However it expects inflation ed to decline from its current rate of 5.2 percent, starting from the first quarter of next year, and reach the Bank of England's target rate of 2 percent in the first three months of 2013.

Amongst its proposals are 26 new road projects, including two privately funded toll schemes: widening the A14 from Rugby to Felixstowe and improving the A1 in the North East.

It also advocates a £500 million package for growth, including credits for companies that hire young unemployed people, and a rebate for energy-intensive industries hit by the carbon floor price, which requires polluters to pay a minimum price for their emissions.

CBI urges fiscal restraint

As a merry-go-round of cut or not to cut continues this morning's latest participant is the CBI which has told the Chancellor that he should balance the public finances sooner rather than later but is right to avoid big cuts this year to protect the fragile recovery.

CBI Director General Richard Lambert presenting the CBI's budget recommendations said that.

"The degree of fiscal tightening we'll need is more challenging than other G7 countries. But one real advantage is that the maturity of government debt is longer than other countries, and we're confident the UK's credit rating is sustainable,"

Writing to the Chancellor they recommend that the budget is balanced two years earlier than forecast by Darling by the end of fiscal year 2016.

An earlier date for budget balance should be achieved through a combination of lower overall spending and public service reform, rather than resorting to damaging tax rises at time when the economy is still fragile.

CBI chief attacks Brown

The government must improve the way it communicates its economic recovery plans, which lack a coherent strategy and timeline, and have left businesses and the public confused according to the CBI

And its director general thinks that Gordon Brown should take Barack Obama's www.recovery.gov as an example for the good.

Richard Lambert accuses the government of fire fighting rather than running a coherent strategy and adds that

it’s hard to remember – let alone distinguish between – the welter of initiatives that it has launched in the past couple of months.

Some cutting remarks from Richard Lambert who goes on to say that

here’s not nearly enough precision about when all this noise is going to get converted into action. Very few of the initiatives have yet been given clear start-up dates. If you ask business people around the country whether they have noticed anything actually happening at the coal face, the chances are that most of them will shrug their shoulders.