Aviation links with Holland are a step in right direction, says CBI South East

Opening daily aviation links with Holland is a timely step in the right direction for businesses and weekend tourists.

The world of commercial opportunity does not stop with our Dutch cousins, so it represents in microcosm what business needs to focus on to ensure their own livelihood and by extension, that of the UK.

Improving export performance is central to our future prosperity. With public finances constrained and domestic consumers burdened by debt, one of our best prospects for sustainable economic growth is through increased exports.

UK businesses must shape a new role in a fast changing world and with the balance of world economic power shifting towards emerging high-potential challengers, business as usual is not an option.

Exports to Brazil, Russia, India, China (BRICs) have grown – but from a very low base and even if growth continues to pick up as it has done in recent years, exports to these countries will not make up the majority of the UK’s total until around 2047, putting us behind many of our competitors.

This is a stark reminder of the mountain we have to climb.

Over the past couple of years, the Government has rightly taken action to put the UK on a more competitive footing.

The Prime Minister’s direct participation in trade missions has supported a range of high-value business deals.

Similarly, the Chancellor’s ambition to double the value of UK exports by 2020 has helped focus minds in business and Whitehall. The Foreign Office too has done a good job in making the diplomatic service more commercial.

Often seen as punching below its weight, UK Trade and Investment (UKTI) has also set an example, developing greater commercial edge.

As a result, business attitudes towards its services are moving in the right direction, although challenges around consistency and visibility remain. Yet key aspects of wider government policy continue to neglect the importance of UK trade.

Our competitors recognise that winning the global race is a team effort and include every business-facing government function in their push for international success – not just their own UKTI equivalents.

Action needs to be immediate if we are to match the efforts of our competitors and reverse the UK’s declining share of global trade.

By putting exports at the heart of industrial strategy and setting the right resourcing framework through an all-of-government commitment, government can help underpin businesses’ efforts to seize opportunities in emerging markets.

n TOWIE comes from a recent CBI report

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