Inflation cheer is no solution to skills crisis

Many things have changed over the last couple of years for our businesses – energy prices, inflation, transport costs, interest rates.

But two things have remained the same our businesses’ confidence for the medium term; and the catastrophic skills shortages that are seriously constraining business growth.

We hear in literally every business consultation event across East Lancs – and I mean that in the correct use of that much exhausted word ‘literally’ – that shortages of the right staff are curtailing our businesses’ ability to function.

Manufacturers unable to accept to orders, contracts unable to be signed – this is no habitual moan as we have heard for decades from our firms about the available workers having the wrong basic business skills. This is a shortage of workers across the board, from senior managers and engineers to pub, shop and factory floors.

Our Bank of England colleagues seemed surprised that the shortage was still so acute, so economically painful. Their thinking, I’m sure, was that as we have seen inflation fall, assumptions were made of the staff crisis easing.

But not so say our firms, it is still as dire as it has been and they can count the economic cost, day in and day out, in opportunities missed.

Future governments beware – this is a problem we are going to need to hear you pledging real solutions to on the soap box.

This is no polite challenge, but a serious economic need and our businesses need a response and a solution now