Osborne must tackle skills shortage, says Hardman
Addressing skills shortages and the funding deficit should be at the top of George Osborne's Autumn Statement agenda, Insider has been told. David Hardman, chief executive of Birmingham Science Park Aston, expressed concern that many "dynamic" technology businesses were being held back by poor skills.
Hardman said the short supply of access to early stage finance and risk capital was hindering businesses across the region.
"Encouraging business angels operating outside tech clusters to move into the new economies is essential," he said. "Linking enhanced enterprise investment schemes to wider business support initiatives, which would create some joined-up thinking and delivery, would also help."
George Osborne is set to give his Autumn Statement tomorrow (29 November).
Hardman added that region's "fragile" economy needed a boost from funding proposals and apprentice schemes.
Hardman said: "I very much hope the Chancellor will use next week’s Autumn Statement to announce additional funding and initiatives to get young people into work. However, funding drives for apprentice schemes must also be used in a targeted way to address skills gaps to boost the economy in a sustainable fashion.
"For instance, the skills shortages in the multi-billion digital technology industries are holding back many dynamic businesses with high-growth potential."
Stephen Hollowood, senior director at consultancy GVA, said that within the property sector funding new infrastructure projects would be "fundamental" to strengthening the UK's economy.
He added that the Chancellor needed to give more detail about the principle of pension funds being able to provide the finance for infrastructure projects, which would lessen the upfront burden to the tax payer.
Hollowood said he expected Osborne's plans would re-iterate the pro-growth initiatives detailed within the Housing Strategy paper, which was published earlier this month.
"The plans are a good start to support the housing industry, but I fear they are not radical enough, given the current lack of housing delivery," he said. "A healthy new homes market could add significantly to GDP and we are a very long way off from seeing this happen."
The comments came as Osborne announced further credit easing measures which could release £40bn in loans to small businesses.
Speculation is rife that the government could underwrite banks' borrowing with loans of £20bn involved at first - though this could double. The small business scheme is said to be focused on companies turning over under £50m.
It is also reported that Osborne is set to announce a multibillion-pound infrastructure investment programme with cash coming from British pension funds and Chinese investment though up to £5bn could be paid for from further public spending cuts.
John Longworth, director-general of the British Chambers of Commerce (BCC), described the move as "a big shot in the arm" for Britain's real economy.
Photo: David Hardman, chief executive of Birmingham Science Park Aston
