The head of the CBI says that the UK must move away from its reliance on debt and learn from the recent financial crisis.
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.”
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.
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.
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.