CBI Warns U.K. Election Pledges Risk Hurting Investment, Skills

(Bloomberg) --

The Confederation of British Industry issued warnings over proposals by both the U.K.’s major political parties as it laid out its own priorities ahead of the Dec. 12 election.

Speaking before the CBI’s annual conference in London on Monday, Director-General Carolyn Fairbairn called for more policies to support businesses and unlock competitiveness in an economy hobbled by slowing investment and some of the weakest productivity growth among its peers.

Steps recommended by the lobby group include greater spending on research and development, changes to business taxes, faster progress on infrastructure projects and measures to bolster investment. That requires a Brexit deal “based on staying aligned with EU rules where they are essential for frictionless trade and protecting the U.K.’s world-beating services sector,” the CBI said.

It also wants a new immigration system to provide access to labor and skills. While the number of migrants entering Britain became a key deciding factor for many voters in the Brexit debate, businesses have expressed concern that they will struggle to attract the workers they need in future.

Fairbairn said in a Sky News interview on Sunday that pledges by the ruling Conservative party to attract the brightest and best immigrants are worrying. “If you do want to build 200,000 houses a year you don’t just need the architects and the designers, you need the carpenters, you need the electricians, you need the laborers,” she said.

Meanwhile, proposals by the opposition Labour party -- which include taking key industries, including broadband provision, into public ownership -- could “crack the foundations of our economy” and freeze investment, she said.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, James Amott, Todd White

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