UK Bosses Fear Gloomy Business Future

19th December 2017.

The Confederation of British Industry has found a “substantial” increase in companies who believe the UK will be a less attractive place to work in five years.

In a recent employment survey by the Confederation of British Industry (CBI) and recruitment provider, Pertemps Network Group, a majority of businesses could not see a bright future for UK businesses.

According to the survey, 63 percent of businesses believe the UK will become less competitive in the next five years. This is a darker outlook than a year ago, and the year before.

The CBI speaks on behalf of 190,000 businesses of all sizes and sectors. Together they employ nearly seven million people, about one-third of the private sector-employed workforce.

Neil Carberry, CBI managing director, said this downbeat assessment by employers is down to a concern about the future mobility of workers coming in from the EU, and pessimism over whether government will address this.

The skills gap was the most prominent worry facing businesses this year, with 79 percent citing this as a concern, up from 64 percent in 2016.

Years of sluggish pay growth may be ending but businesses are still facing the risk of higher consumer prices as inflation remains at a five-and-a-half-year high of 3.2 percent.

The lobby group survey found 52 percent of businesses aim to raise pay in the coming year. This is less than the rate a year ago, but CBI insists this could lead to a moderate increase in average pay growth in 2018.