Liverpool’s regeneration praised by UK business chief
The voice of British business backs Government cuts – but only if accompanied by a viable growth strategy.
John Cridland, director-general of the Confederation of British Industry (CBI), who has been in Liverpool for the Labour Party Conference, told LDP Business that grant money to bankroll Liverpool’s regeneration had been far better spent than in many places.
“There’s no doubt grant aid has been a big part of Liverpool’s regeneration,” said Mr Cridland.
“It’s an amazing transformation, but money on its own is not enough, there must be purpose.
“Millions of pounds was sunk into ill-advised millennium projects elsewhere which closed a few years later.
“They were not properly related to their locality, but, for example, in Albert Dock we see world-class facilities like the Convention Centre and Arena which people want to come to.
“Liverpool’s regeneration funding has been correctly used for pump-priming, creating a momentum which will continue.
“The digital and creative industries are also absolutely vital in the economic revival of our regional cities, as we can see with Liverpool’s great success.”
He believes the Government is on the right track with the cuts.
“They are being bold, but also measured in what they can do.
“That’s why they must stick to their policy, but also have a growth strategy alongside.
“There is a major change in student funding which will hit big university cities like Liverpool, but it’s a necessary one.
“Why are the cuts so vital? I would ask the opposite: what’s so magical in running up debt?
“We know how the international money markets work and we depend on their goodwill.
“During summer, the money markets snapped at the heels of Italy, Spain and even France.
“What is the alternative? An inability for us to borrow on the international money markets?”
While at the Labour Party Conference in Liverpool, Mr Cridland spoke to John Denham, MP, the Shadow Secretary of State for Business, Innovation and Skills.
“What I wanted to get across was the importance of medium-sized companies to the UK,” said Mr Cridland.
“The big boys can take care of themselves and small businesses fill MPs’ post bags, but we forget about the medium-sized ones, which struggle to find their voice.
“I visited Daisy Communications in Nelson, Lancashire, which didn’t exist 10 years ago, but now has an annual turnover of £200m and employs 1,500 staff.
“It sells integrated telephone systems to small businesses and has created jobs which local people can apply for.
“You’d need a lot of two-people businesses to take on an extra person to make that difference.
“But the arrival and growth of a business like Daisy puts a big dent in North West unemployment. We’re telling Labour politicians to be aware of the forgotten army of medium-sized businesses.
“If we get it right and look after them properly, we can grow them very fast, but I don’t hear politicians talking about them.”
Liverpool took the brunt of cuts early on, he admitted, whereas central government cuts will follow later.
“The medicine is painful, I’m sure a 10% NHS spending cut doesn’t have to be in front-line services, but back-office ones.
“I know public spending cuts has a knock-on effect to businesses such as builders in Merseyside, but why not have more smaller projects rather than big iconic ones?”
Labour’s attitude to business turned around with Tony Blair.
“He recognised the need to have a normal relationship with business. I appreciate the Labour Party is listening to us,” he said.
“I am interested in solutions which aren’t always easy, but find it better if people work together.
“The public want to know politicians and business are planning together to sort things out.”
There are three initiatives that can stimulate the economy, he said.
Government investment, which also builds confidence;
Exports – after years of a strong pound, there has been a 20% depreciation, and businesses must sell more to south-east Asia;
Create jobs – when business invests, it creates jobs.
Mr Cridland added: “My challenge to the North West is please go that extra mile with more apprenticeships and work experience for young people.
“We don’t want another scarred generation of youngsters with no experience of the labour market.
“Peel’s proposed International Trade Centre at Wirral Waters is a momentous opportunity.”
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