As Ed hones his big speech: What business wants from Labour

Tomorrow Ed Miliband sets out his pitch to the country about economic recovery. But what ideas does business have on the matter? About 70 leaders from UK and global business gathered early this week at Labour HQ to offer their ideas on generating growth at an event this week hosted by Chris Leslie and Ian Wright.

The good news is the vast majority of senior figures in business support Labour’s position on saying ‘no’ to a referendum. The argument for stability rather than uncertainty is compelling in the short run. Most international businesses and UK exporters believe that.

But as one executive from a global company told me at the Growth event: “Yes, we support Labour’s position on the EU, but that’s not a full business policy. We need to hear more than that.” It’s a sentiment echoed by others.

Of course Labour has much to offer business above and beyond opposing the referendum. Through key events like Inclusive Prosperity we have seen clear attempts to convey this. But, still, more needs to be done to resonate with our main employers.

Because, back to good news: Business wants intervention. It wants it in skills and education. It wants it in supporting small business grow. It wants government to lead in infrastructure. And it wants government to stand up for key industries.

Intervention on Skills

Skills and education has been high on the agenda and long promoted by leaders including Charlie Mayfield of John Lewis. In conversation leaders express support for the party’s talk of getting children at primary schools to be aware of the skills they need for the 21st century workplace – to encourage take up of science, technology, engineering and maths, especially among girls.

We heard of concern about potential recruits lacking skills to work in construction and care services. The pharmaceutical industry would like a focus on aligning university activity with private sector R&D.

Intervention for SMEs

Executives in the financial sector endorsed and underpinned the importance of giving a wider range of financing options to small and medium businesses to help them grow. In short they need more access to equity and less debt finance. There was support for export credit to help SMEs start selling overseas. There was appetite for local ‘angel’ investing. All of these are food for thought for architects of the British Investment Bank. But a localised funding structure would dovetail with the regional bank that Labour has proposed.

Leading in infrastructure

We heard further endorsement for Labour’s plans to ‘take the politics out of infrastructure planning’ with a long-term approach, as mapped out in Lord Adonis’ report earlier this year. Executives made specific requests for policy to support shipping and build out our digital infrastructure.

More industry champions

Finally we heard backing for a Labour policy – the Automotive Council, set up by Lord Mandelson to champion the UK car industry, and a plea to establish a similar council for the food business.

Business will continue to lobby hard for self interest, for pet tax breaks and will resist regulation. But it also wants intervention. It wants alignment of politics with a long-term growth agenda, one that will tackle rising inequality – and Ed must tap into that demand.

Jeremy Adams is a committee member of Labour in the City