Business & National Economic Recovery Plan
The Government’s National Economic Recovery Plan published today, is multifaceted in detailing many of Ibec’s priorities and providing much certainty required by business as we gradually transition from this state of pandemic emergency. The emphasis placed on an inclusive recovery is underpinned by the role of social dialogue mechanisms which Ibec will be centrally involved in being the business community lead.
In this transition, many businesses, particularly those operating within the Experience Economy, require continued cushioning. The avoidance of a cliff edge withdrawal of support schemes for business and a commitment to a tapering off in the months ahead, is a strong endorsement of Ibec’s lobbying effort. Noteworthy too is securing funding from the EU Recovery and Resilience Fund. This is the key mechanism to address the pre-existing economic and social challenges exacerbated by the pandemic and has the potential to ensure the long-term sustainable recovery and development of the economy. This fund will be channelled into skills investment, digitalisation opportunities and supporting the economy’s low carbon adjustment ambitions.
The three pillars of today’s plan, Back to Work, Sustainable Enterprise and Inclusive Recovery, are important markers. The commitment from Government to deliver the new Pathways to Work programme is a much-needed strategy that reflects the changed labour market because of Covid and will undoubtedly play an important role in addressing emerging skills mismatches within particular sectors and avoiding long-term scarring within the labour market. Securing further innovation, deployment and adoption of the digitalisation opportunities presented by the emerging post-Covid landscape must also be pursued by Government.
While much of the detail will be worked out in the coming days and a Summer Economic Statement is due later this month, Government should be commended on adopting the correct strategy in these circumstances.