The government should press for closer ties with the European Union (EU) as part of a wider push to grow the UK’s services trade, the Confederation of British Industry (CBI) said today.
CBI want Britain closer to the EU (Image: Getty)
In a new report, the business group argued that closer ties with the UK’s major trading partners would help deliver the economic growth which the new government has pledged to deliver.
“If we’re going to get the growth we need, for London and all regions of the UK, we’ve got start cheerleading our powerhouse services sector,” Rain Newton-Smith, the CBI’s director general said at the business group’s summer reception.
To help grow services trade, the CBI called on the government to “foster greater regulatory co-operation” with the EU.
“By agreeing to maintain a common commitment to base technical regulations on international standards where they exist, the UK and EU can deliver a low friction trade environment,” the business group said.
It suggested that shared standards could be agreed through the specialised committees which were established as part of the Trade and Co-operation Agreement (TCA).
The CBI also called on the government to push for sector specific mutual recognition deals with “relevant jurisdictions” which would see qualifications are recognised in other jurisdictions.
Firms cited the US and South Africa as “priority markets”, but the government should also seek “clear requirements for and paths to” mutual recognition deals with the EU when the TCA comes up for review in 2026.
In addition, the government should “create mechanisms” through which regulators can work with their counterparts to address barriers to trade.
These policies should form part of a broader industrial strategy, which prioritises the UK’s services sector. Newton-Smith said the government’s strategy needed to be “just as much hard drives as hard hats.”
Industrial strategy is the idea that there are clear objectives that the government is striving towards and that intervention in the economy be it through regulation, direct subsidies or some other means can help achieve those goals.
The new government has pledged to introduce an industrial strategy as it seeks to lift the UK’s sluggish growth rates.
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POLL: Should Labour admit mistake and scrap cuts to winter fuel payment? Vote now
Should Labour admit mistake and scrap cuts to winter fuel payment? (Image: GETTY)
Around 10 million pensioners have now had their winter fuel payments cut, after the controversial plans came into force on Monday.
The axe has caused uproar, with key figures branding it a “disgrace”.
James Cleverly said removing the winter fuel payout was an “unbelievably foolish choice”, with more than two thirds of older people with disabilities set to miss out this year.
Robert Jenrick has also hit out at Sir Keir Starmer for the decision, accusing the Prime Minister of “declaring war” on pensioners.
Research from charity Independent Age has shown that older people will be “forced to make dangerous cutbacks” following the cuts.
So, should Labour admit their mistake and scrap the winter fuel payment cut? Vote in our poll and have your say in the comments.
Independent Age Chief Executive Joanna Elson, CBE said: “We are also concerned about the large group of older people that just miss out on Pension Credit.
“Many of them are in financial hardship and do not have enough money to live well, but will still have their income cut at an already challenging time of year with energy prices on the rise.”
The energy price cap is due to rise by 10 percent in October, further adding to the stress for older people trying to pay bills.
Warnings have also been issued over the cost that cutting winter fuel payments will have on the NHS.
Figures from Age UK show an estimated extra cost of £1.4bn a year for the NHS in treating the elderly for cold related conditions.
Analysis for the Sunday Express by Age UK has shown nearly one million pensioners in England live in homes which are too cold in the winter, have rising damp or bad condensation.
With temperatures only getting colder, experts are calling on Labour to reconsider their decision and scrap the cuts now.
