Costs of Living Delays the UK Enterprise Strategy


The long-promised enterprise strategy to set out goals to drive growth and boost private sector investment in the UK following the coronavirus has been delayed by ministers.

Kwasi Kwarteng, the UK’s Business Secretary, was busy working on the plans that would encourage entrepreneurship to support small business expansion ever since the summer of 2021, working to address concerns that the UK economy becoming too dependent on state subsidies following the pandemic. The document was aimed to be published by the end of 2021.

Pause

Unfortunately, the plan was never realised and instead officials paused work on the strategy, which caused friction with business groups looking for the government to focus on supporting growth whilst confidence is dwindling.

Seen as part of the overall plan to replace the industrial strategy, officials state that work was stopped to focus all resources on issues surrounding rising energy costs, to kick it back into gear at a later date.

Allies of the Business Secretary claim that the minister deliberately pushed the publication of the strategy past the confines of the current budget to ensure it incorporates new financial pledges.

Disappointment

Many states that it is very disappointing for the government to stop work on the strategy – such as Craig Beaumont, chief of external affairs at the Federation of Small Businesses. Small businesses feel that they need support in growth as they face rising costs and the burden of late payments. A new generation of entrepreneurs in the UK is seen as the solution.

The CBI has said that the private sector plays a substantial role in the government meeting their ambitions and creating growth across the nation. Businesses are looking for good reasons to delve into investing and the strategy is a huge part of the process, leaving businesses hoping to see the published strategy sooner rather than later.

Speech Inclusions

The government has stripped the legislative timetable for the upcoming parliamentary term of some business-focused policies. The long-anticipated employment bill was not a part of the Queen’s speech, whilst reforms to audit and digital competition were only inclusive in draft forms.

These bills were delayed due to making room for more urgent legislation such as an energy security bill to meet the plans for net zero in 2050, and an economic crime bill to take on areas of money laundering. The speech did include financial services regulations to boost UK investment, as well as provide the new infrastructure bank with a statutory grounding as it invests billions into the UK assets.

The government has gone on record to be fully committed to supporting businesses and providing the best conditions for enterprises to flourish in the UK.

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