BIRMINGHAM –
Britain needs more migrant labour to boost productivity as it faces a toxic mix
of soaring inflation and shrinking growth, the country’s main business lobby
group warned Monday.
The
verdict from the Confederation of British Industry (CBI) came at its annual
gathering in Birmingham, Britain’s second biggest city.
The
CBI conference comes after the government of Prime Minister Rishi Sunak slashed
spending and hiked taxes in a budget, despite admitting that the
inflation-wracked economy had fallen into recession.
“We
come together, once more in extraordinary times,” CBI director-general Tony
Danker told delegates in Birmingham, central England.
“Britain
is in the middle of stagflation – rocketing inflation and negative growth – for
the first time that probably most of us can remember.
“We
know how to fight inflation. We know how to fight recession. But we don’t
really know how to fight them together.”
Sunak,
who also addressed the CBI on Monday, took office one month ago after
predecessor Liz Truss delivered an unfunded tax-slashing mini-budget that
tanked the pound and sent UK borrowing costs soaring.
UK
inflation sits at a 41-year peak of 11.1% on rocketing food and energy costs in
the wake of the Ukraine war.
Consumer
prices have also raced higher as demand rebounds following the lifting of
pandemic lockdowns.
That
has worsened a cost-of-living crisis for businesses and individuals, hit also by
soaring interest rates as the Bank of England seeks to cool runaway inflation.
The
UK has forecast the economy to shrink 1.4% next year, hit also by fallout from
Brexit which has resulted in foreign workers returning home.
“When
you look at the (growth) data, the only thing holding it up, actually, is
higher hours worked due to higher immigration,” Danker added on Monday.
“People
are arguing against immigration – but it’s the only thing that has increased
our growth potential since March.
“Let’s
be honest – we don’t have the people we need, nor do we have the productivity.”
Sunak,
addressing the conference later on Monday, ducked the CBI’s call for more legal
migrant labour – and stressed that he was focussed on curbing illegal
migration.
“The country’s number one priority right
now, when it comes to migration, is tackling illegal migration,” he said. AFP
0 Comments