Although economic growth and recovery is well underway throughout the UK, economists are urging business leaders to rebuild the trust lost due to energy prices and corporate tax.
<p>The head of the CBI says that the UK must move away from its reliance on debt and learn from the recent financial crisis.
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<p>In his New Year’s message to British business leaders, John Cridland, director of the CBI, explains: “The recovery is broad-based and continues to gather pace. As a country, we need to move away from an economy that was far too reliant on consumer and government debt. As growth picks up, we must make sure that it is well-balanced.”
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<p>Mr Cridland’s concerns stem from the recent resurgence in mortgage lending and the growing housing market, which has economists fearing that much of the economic growth may be based on personal borrowing.
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<p>Despite these trepidations, wages will pick up in almost every sector and businesses will be hiring more permanent employees in 2014 than they have in several years; in fact, business is playing a growing role in the UK’s economic recovery, accounting for about 80% of all jobs and creating almost one million new positions in the last year.
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<p>British businesses are also investing approximately £49 billion each year in training staff and new employees; these same businesses have contributed around £161 billion in taxes.
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