Mark Sumariwalla Summers’ Post

As we approach the election, I have been reflecting on what the next government can learn from the business sector. It is my belief that there is a beacon of hope for entrepreneurs across the UK. With inflation falling and the economy growing, we stand on the cusp of an economic bounce-back that could confound naysayers and elevate our global standing. Despite the challenges faced in recent years, we are the sixth largest economy in the world, boasting the second largest services economy and the sixth largest public market. We also have the highest concentration of business ownership per capita in the G7. Our entrepreneurial drive is unparalleled. The UK is more than a nation of shopkeepers; we are a nation of pioneers, innovators, explorers and entrepreneurs. Recent investments in semiconductors and gigafactories illustrate that innovation flows through our veins. Yet, to fully harness our entrepreneurial spirit and make a real impact, we require clear direction and a supportive environment. For that, we need a strong, knowledgeable government. Yet it is not the government’s job to run our businesses for us. The job of the government is to provide a safe harbour from which our ships can sail. And building this safe harbour on regulation, incentivisation and thoughtful taxation is critical as we now look forward to the next five years. We need long-term policy and thinking. We need clear objectives for growth and the necessary tools to allow us to succeed. We have no shortage of entrepreneurial drive; we just need direction. We need a safe harbour. Read more in my latest comment piece, 'This election is a chance to transform the business environment', in The Times: https://lnkd.in/eHHeKSpA  #BusinessTransformation #BusinessStrategy #EconomicGrowth

Countdown week to the UK election and discussions have been raging about stimulating growth; a topic explored in Baringa’s recent paper proposing 5 policy levers to boost the UK’s economic prospects. We often lament historical under-investment in UK infrastructure, but it's equally important to focus on maximising the productivity of the investments we do make and making them more attractive for further investment. We need to initiate a flywheel effect by committing to and delivering upon strategic projects that are designed to enhance productivity from the outset. We need to create certainty for private finance and make it worthwhile paving the way for innovation in capital and automation investment. Not to mention the succession plan for the people with the skills needed to deliver major projects effectively, many of whom are currently working abroad as a result of the current market. If we get it right, increased productivity of delivery would contribute to broader economic productivity in the UK, ultimately generating more capital for further investment and perpetuating the cycle. Increasing Capital and Automation Investment is the first of 5 key policy initiatives we propose would most effectively shape the future of the British economy. If you’d like to read more about this and our other proposed policy levers, you can find our ‘5 levers for economic growth’ report below. Have a read, and please reach out if you’re interested in hearing more about our thoughts about the challenges facing government, and how we can best tackle them. https://lnkd.in/ez7f3dmZ #growth #5levers

Rachel Reeves’ vision of a once-in-a-lifetime opportunity to reset UK politics speaks directly to the core of my research on economic competency. After the sum of several years of economic turmoil and the loss of economic credibility for the Tories due to Liz Truss and others, Labour now stands poised to demonstrate that economic stability is indeed a hallmark of its governance. As Reeves (reportedly) rightly notes, with stability comes investment, and with investment, growth and prosperity. Every Labour Party member, and every Labour MP and Lord, should be backing Reeves on this point. Establishing Labour as the party of economic competency will mean establishing itself as the new natural party of government. This reflects my own findings: economic competency isn’t just about balancing books, but unlocking policy space for progressive change. Rachel Reeves’ (reported) full quote: “After 14 years of Tory recklessness, we have a once-in-a-lifetime opportunity to reset politics in our country, and the prize on offer for all of us is huge. The Conservative Party, which declared itself as a party of economic competence, has shown itself to be utterly incompetent. If we show, as I believe we will, that economic stability is the hallmark of Labour governments, there is no limit to what we can achieve. With that stability comes investment. With investment comes growth. With growth comes prosperity.”

Is the UK at risk of entering a dangerous 'populist trap’? Rachel Reeves recently stated the Labour Party have “no plans” to raise Capital Gains Tax (CGT), but they haven't ruled out doing so in the future. The truth is, if we adopt policies that make us globally uncompetitive, we will pay the price. The UK is in desperate need of growth. We should be championing our innovators and entrepreneurs, not stifling them with the constant threat of higher taxes. Their efforts create a ripple effect, generating jobs across multiple sectors. CGT brought in £16.9 billion in 2022-23 – it's a critical part of our fiscal puzzle, even if it's not the biggest piece. Any drastic changes could spark fierce backlash and wreak havoc on vital sectors of our economy. One source estimates that aligning CGT with income tax rates could generate £16.7 billion annually, while this might seem like an increase, we must consider the potential loss from entrepreneurs who may feel disenfranchised or choose to leave the UK. As leaders, we need to have honest conversations about what increasing CGT would mean. It's not just investors and entrepreneurs who would feel the impact – it's the entire economy. In a world as competitive as ours, we can't afford to send signals that discourage risk-taking and innovation. Lower CGT, especially for entrepreneurs and innovators, fosters investment and entrepreneurship while ensuring everyone contributes their fair share to society. Governments should implement policies that drive prosperity and create opportunities, not ones that stifle growth. What do you think? #EconomicGrowth #CapitalGainsTax #Entrepreneurship #Investment Image source: Labour List

Time for the new Labour government to break with economic orthodoxy. ❗️ The new UK government has rightly nailed his flag to the mast of economic growth. If PM Keir Starmer delivers on this promise, then the next decade will be gifted to Labour – but should he fail, it’s unlikely the electorate will forgive him. Although short-term growth can be achieved with directed capital spending, long-term and sustainable economic growth needs to have innovation and entrepreneurship at its core – stimulating these across the country will catalyse investment and distribute it nationwide. ➡️https://lnkd.in/ek2Sdb9P 🔗 Guest post by Dr. Ewan Kirk, technology entrepreneur, early-stage investor, executive, and philanthropist. He is BAE Systems Non-Exec Director, Entrepreneur-in-Residence at the Uni of Cambridge, and Chairman of Deeptech Labs. #labour #ukgovernment #investment #growth #economy #UKtech

A Report Card on 14 Years of Tory Rule Bloomberg Opinion columnists assess what the Conservatives have delivered for the economy, society and Britain's standing in the world. The challenges awaiting the next government are numerous. - 14 Years of the UK Annoying Europe - British Startups Just Can't Seem to Scale - Tories Handed England an Awful Sewage Problem - Tories have failed on their security strong suit, and the mess will be hard to fix. - Successive Tory governments have overseen the decline of the pound and the diminishing of UK equities - Tories Can’t Hide From Their Failures on Immigration - The UK Corporate Crisis Has Gone From Bad to Worse - Britons Have Good Reason to Lose Faith in the National Health Service - The UK Has a Productivity Problem. Tory Rule Made It Worse. Since 2010, Britain has fallen further behind its peers. Years of heavy planning restrictions, weak public investment and the Tory party’s own chaotic and volatile politics since the 2016 Brexit vote have all hurt business sentiment and the economy. Since 2010, British productivity has fallen further behind the US, lost touch with other Group of Seven peers and even been overtaken by the 19 euro-area countries. Bloomberg Opinion (and the Tories were supposed to be good for business!). https://lnkd.in/e-ngYdXV

A change of government represents a significant moment for the UK’s future.   This new government enters office faced with some of the most challenging economic and fiscal circumstances in recent memory.   However, we’re hopeful that a decisive result can bring stability and bolster business and investor confidence. And the incoming government’s focus on resilience and a commitment to putting inclusive growth at the heart of their approach is welcomed.   The UK’s new Prime Minister, Sir Keir Starmer, has been clear that tackling some of the biggest economic, technological and societal challenges is not a job for government alone.   Business therefore has a role to play, using its skills and experience, to help government deliver much-needed growth and a more inclusive and sustainable future for our country.

Regardless of the 29 May general election results, two issues are clear: first, economic growth will be the new government’s primary challenge; second, given the abject failure of existing economic policies, new and innovative approaches are needed.

The desire for economic growth among our political leaders in Britain is limp and lacking in determination. The politics of envy, grievance and moral panic is widespread. Hoping for economic growth in this intellectual environment feels futile. It is, then, refreshing to see the new book ‘Return to Growth: How to Fix the Economy’, released today, making the case for reigniting growth in Britain. The author is Jon Moynihan, who knows a thing or two about entrepreneurialism, wealth generation and encouraging business start-ups (and hasn’t simply read about these alien concepts in a dusty textbook). It contains as much a moral argument as an economic one for how we get back to growth. As Moynihan reminds us throughout, it is too easy to belittle the impact of improvements in standards of living over time, which have in fact transformed opportunities for humans to live productive and stable lives. It is that dirty word ‘growth’ which provides the raw ingredient for most things we have taken for granted. A large economy can afford higher per capita spending when providing public services to its citizens. It guarantees standards of living in which wages satisfy more of our needs, wants and happiness. It means new business, new industries and new opportunities for individuals. It enables us to adapt to global events, be they natural, political, economic or technological. We seem to have a hugely disconnected conversation on economic growth, separated out from the stifling of desire for self-improvement, or the ability to find new and better job opportunities to earn a better real wage for work. Away from the gravy train of state largesse and growth-defeating agendas of HR diversity workshops and green taxes, the UK requires an entirely different view of the role of business in our national life. ✍️Jim McConalogue https://lnkd.in/euuNVb8h