Phil Smith calls for next government's support for South West priority initiatives

Phil Smith, the Managing Director of business support organisation Business West, is calling for government support after the election in 10 priority areas for the region.

He said: "Business West exists to create long-term prosperity for our businesses and our region. Through our Quarterly Economic Survey, which acts as a barometer of business sentiment across the region, coupled with our ongoing conversations with members, we understand what our local businesses need from the next government.

"Our region has seen a real lack of investment in skills and dealing with core issues, such as transportation and housing. Tackling these issues, most of which are interlinked, requires serious investment that lasts beyond just one political cycle.  

"Businesses need this to plan and play their vital role in job creation. 

"We are calling for long-term initiatives in the following ten areas, which will help our economy be healthy, and our businesses and communities thrive."

His 10 priority areas are

Improved transport connectivity in the region

"This is not just a ‘transport’ issue; it is fundamental to improving economic growth, social mobility, cohesion and achieving net zero targets," he said.

"Areas with well-connected transport routes tend to have higher productivity."

Housing and improvement in the planning system

He said: "We cannot understate the housing crisis’s huge impact on the ability to attract and retain talent in our region. This is also creating wider pressures for businesses who are looking to start, grow and invest. Less land available means fewer premises and increased price pressures. In a drive to create more homes we must not overlook the need to plan for employment land too. 

"We require long term strategic planning to help overcome the significant challenges of our region: space for our future homes, for businesses to grow and the transport, energy and other infrastructure needed to support this growth in a sustainable way."

More investment in education to address the skills-gap and drive social mobility in our region.

Investment

"Our region’s prosperity depends on attracting future investment from both domestic and international companies in new growth sectors. This will create the jobs, technologies and tax revenue needed to sustain our economy and public services.  

"The UK’s record on inward investment and growth has been weak in recent years, yet our region has the potential to be the home of our future firms and clusters. Both Swindon & Wiltshire and the West of England have performed well at attracting key investors, even at points of economic downturn."

Our region has historically had a good track record for export and trade. 

We need greater regional support to identify and access international markets in a way that supports local sectors and regional strengths, including more market-focused engagement and support brokering deals and buying relationships, beyond trade missions. 

Better SME support to help firms overcome barriers and inertia to start trading overseas and do so properly. This requires business intelligence, and private sector aligned support. 

Greater unity across local authorities

Phil said: "Despite our region’s many strengths, it has struggled to make the most of benefits and opportunities brought by devolution and most recently the ‘levelling up’ agenda. 

"Our region is geographically, demographically, and politically diverse, and this has resulted in a lack of a cohesive vision, ambition and leadership on the direction of transformation and change. This is most notable in the West of England Combined Authority area. 

"We need greater unity across local authorities, and a regional strategic plan. That plan must include the ambitious, and joined-up, delivery of new homes, jobs and infrastructure across local authority boundaries."  

Support for innovation 

"Our region is home to six top UK universities, a Catapult Centre, three Institutes of Technology, and educates over 90,000 students. This helps drive UK innovation. Greater regional funding would further boost innovation within our region."  

A revised approach is needed to attract investment into startups and scaleups, given the decline in venture capital post-Covid and investor caution. Support measures should include tax incentives, R&D grants, and enhanced accelerator programmes.  

We look forward to reform of the UK Pension Funds so that they can invest in these early-stage businesses.

Net Zero

The region currently has among the least clean sources of energy supply in the UK, especially during peak times. "However, our region has the potential to be a leader in green energy supply through solar, wind, hydrogen, tidal, and nuclear power generation. Our grid connectivity is hindering this.

"We need improved transparency about grid capacity at a national, and local, level. We need greater investment to improve delivery times for new power capacity and connections."

Employee inclusion

"We need increased support for employers to engage with inclusion in their workforce, and support for the third sector.

"Bristol is the 7th worst of 348 districts in England and Wales for black and ethnic minority communities to live and thrive, with 41 areas in the most deprived 10 per cent in England, and an ethnic employment gap which is twice the national average.  Yet, 86% of employers acknowledge that they know they don't recruit inclusively. Many of our other communities suffer from long standing deprivation and economic exclusion."  

Support to leverage AI and boost computer skills

"The business community requires urgent and effective support to leverage AI, and other disruptive technologies to their best advantage. Transfer of AI technology expertise into UK workplaces is going to play a huge role in improving the UK’s workplace productivity.  

"For education and our workforce of the future, we need the 11+ education system to have a greater focus on computer science skills. We also need the greater provision for reskilling people currently working in industries at high risk of disruption. 

With nearly half of UK businesses without plans to use AI internally due to barriers in knowledge and budget, support for innovative SMEs to invest in this game-changing technology is going to be important under the next government."