The UK “can’t rest on our laurels” in high-growth industries like life sciences and net zero, the boss of Confederation of British Industry (CBI) is to say.
Fresh CBI data has revealed the extent to which the UK’s net zero sector contributed £74bn – or 3.3 per cent – of the economy, equivalent to the value of Wales, in 2022-23, CEO Rain Newton-Smith will tell top executives at a star-studded dinner in the City of London tonight.
And she will urge business leaders and politicians at the national business dinner to focus on “partnership not politics” as key to UK economic growth and its multibillion-pound industries.
Newton-Smith will say that the “golden thread” running through the economic headwinds that have buffeted firms in recent years is “the power of business and government when we work in partnership… all we have achieved together in the face of adversity”.
She will say: “I am convinced we can do that again on the issue that will define our economy and country for generations… raising our ambitions to deliver long-term, sustainable growth.
“For the next 50 years and more, the global economy is going to be defined and reshaped by the high-growth, high-tech industries of the future.
“Life sciences, green tech, creative industries – and advanced manufacturing. And here, the UK is coming from a position of strength.”
Net zero firms, according to the CBI’s new economic data, make up 24,000 companies, with 765,000 full-time equivalent jobs, equating to 2.9 per cent of total UK employment. It also grew nine per cent last year, while advanced manufacturing contributed another £16bn..
The life sciences sector contributed £35bn in total gross value added (GVA) in 2022-23, or 1.5 per cent of the economy; and supported 450,000 jobs, or 1.7 per cent of employment.
But Newton-Smith will stress that the UK is “at the start of a worldwide race for market share… though we’ve got a head start, we can’t rest on our laurels”.
We can’t “outspend” the US’s one trillion dollar Inflation Reduction Act stimulus package, but “we can outsmart them – through partnership,” she will argue.
In a nod to the upcoming general election, she will warn: “We’re entering a period of high politics. When it’s too easy for discord to win.
“When it’s too easy to lose sight of the long-term goal because of short-term politics. So my message to all parties today is – let’s keep our eyes on the prize.”
The CBI’s National Business Dinner is being held in the City of London this evening, with previous guest speakers having included the Chancellor.