With consumer confidence “evaporating,” CBI (Confederation of British Industry) director general, John Cridland, has stated that only businesses can rescue the UK economy from it’s current downward spiral. With both the government and consumers practicing conservative spending, Cridland believes that economic stimulation would have to come from business investments and exports that will cause the creation of new jobs in the UK.
The director general also stated that many UK business firms have ideal balance sheets and are operating with enough investment capital, but lack the “confidence to invest” given the current state of the economy. John added that the primary issues that are keeping businesses from investing are likely related to the ongoing eurozone debt crisis. Thus, he deduced that the political issues looming in the eurozone are causing businesses to become hesitant in their investment patterns, and that a resolved debt crisis would likely result in the resumption of economic growth.
Some CBI members have suggested that the government could help stimulate business investments without allocating more taxpayer’s funds by initiating projects that would encourage investments in the private sector, such as constructing more toll roads. The CBI has also recommended an increased emphasis on exports, which they believe could give the UK economy a 20 billion pound boost during the next eight years.
CBI members have stated that if the government is able to increase net exports by just 0.1% between now and 2016, the economy could benefit significantly. In addition, CBI is also calling on British companies to match the European Union average of 25% of small to medium-size businesses providing exports by the year 2020. With a resolved eurozone debt crisis, government projects that stimulate private-sector funding, and an increased emphasis on exports, many believe the UK’s current economic problems could be solved.
