EMERGING ECONOMIC SLOWDOWN HEAPS FRESH PRESSURES ON UK INDUSTRY
Posted on 22nd March 2022
Various challenges to UK industry need to be mitigated through Government support and strong business practice, the Chartered Management Institute (CMI) has said, highlighting the economic effects of the war in Ukraine adding to enormous headwinds already buffeting the UK economy.
UK businesses are already dealing with increasing production costs, knock-on effects from the rising cost of living, realigning to work in new ways with Europe and outside the EU as well as recovering from Covid. The CMI has outlined key actions that it believes industry and Government should take as these pressures are added to by the effect of economic sanctions on Russia.
CMI is advising businesses and organisations to; provide strong support for staff, up contingency planning, invest in upskilling their existing staff, and future proof their businesses against ongoing economic shocks. The CMI is also calling on the UK Government to support managers and leaders through 4 key areas: supporting household budgets, shielding investment in skills for resilience and productivity, doubling down on the country's move to Net Zero, and a new comprehensive policy for management and leadership.
Director of Policy, Anthony Painter said: "The actions of Russia in Ukraine are barbaric and an undoubted humanitarian tragedy. The economic sanctions being taken against Russia are absolutely the right thing to do and businesses across the UK need to support them and prepare for their impact. Even an early conclusion to the conflict would mean managers and leaders in the UK can expect to see growth slow. This all comes as the UK faces existing unequalled challenges from rising cost of living, the adjustment to business post- Brexit and the pandemic. The upcoming Spring Statement offers the Government an ideal opportunity to really give businesses a leg-up and real support. That includes supporting household budgets and accelerating energy transition. At the same time, managers and leaders can apply the learning from the last couple of years to ensure that their organisations are resilient to weather the storm".
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