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Forum of Private Business warns of ‘ perfect storm brewing ’ as trade deficit widens
The Forum of Private Business is advising members to have a survival plan in place as the UK goes through the Brexit negotiations .
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REACTING TO TODAY ’ S poor Productivity and Trade data , which show that the UK ’ s total trade deficit widened by £ 2 billion between May and June of this year , the Forum is expressing concern that the eyes of both the government and business are too heavily focused on Brexit and not enough on getting Britain trading .
Ian Cass , the Chief Executive of the Forum of Private Business , explained : “ The latest data covering manufacturing , productivity and trade , together with the Bank of England ’ s Inflation Report are all telling us that businesses are likely to face difficult economic times in the coming two years . Yet the Government appears to have just one thing on its agenda … Brexit . Many businesses have the impact of increased business rates to contend with , but the Government website to help with appeals is not working .
NEW DATA PROTECTION – LACK OF CLARITY
Additionally , many businesses are facing upheaval to comply with the new Data Protection requirements , which are being rushed through to align with European rules , but with no clarity on how they will affect them .”
The latest data , released by the Office for National Statistics on 11 August , makes poor reading for the production sector , with output and manufacturing reportedly falling in the second quarter of this year .
The Forum highlights three key aspects that need addressing .
• Stable conditions
• Opportunities
• Skills
Commenting , Ian Cass said : “ Of course we all recognise that there will be uncertainty around Brexit , but the Government is giving insufficient guidance to businesses on other day-to-day issues that would make their lives easier .
GET BRITAIN TRADING
“ Whilst we have a weak pound the best opportunity that many businesses have to expand is through exporting , which is why we have launched our Get Britain Trading campaign . Businesses need additional support now from Government with the assurances that target markets will still be there after Brexit .” The Forum says that it is , however , most concerned about skills .
“ The impact of Brexit on the pool of skills available to businesses is of course an issue to be addressed in the negotiations , but Brexit or no Brexit , feedback from Forum members tells us that the skills shortage remains the biggest blocker to growth , and the continued lack of focus on this from Government is disappointing ”, says Ian Cass .
“ If we take the deteriorating trading data , together with the additional regulatory burdens on business , continued uncertainty in the economy , and the worsening skills picture , there is a serious risk that the SME community will find itself struggling to survive , whilst the Government ’ s sole agenda is Brexit negotiations . We would ask those in power to balance their business priorities if we are to avoid a perfect and painful storm .”
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