Speech

Chancellor speech: CBI Annual Dinner 2018

The Chancellor of the Exchequer, Philip Hammond's speech at the Confederation of British Industry (CBI) Annual Dinner 2018.

From:: HM Treasury and The Rt Hon Philip Hammond
Published: 22 May 2018

Location:: The Brewery, London
Delivered on:: 22 May 2018 (Original script, may differ from delivered version)

[Check against delivery]

Thank you, Paul.

And let me join you in commemorating those who lost their lives and those who were injured during the appalling attack in Manchester, a year ago today바카라 사이트ｦ

바카라 사이트ｦour thoughts this evening are with the families and friends of those affected.

As ever it바카라 사이트冱 a pleasure to speak to you tonight.

And what a week it has been.

The Royal Wedding; the FA Cup Final; and now the CBI dinner!

And I바카라 사이트冦 especially pleased to be here this evening to mark the end of Paul바카라 사이트冱 three-year tenure at the helm.

I was doing a little research and stumbled across an FT interview with Paul in 2011.

When asked 바카라 사이트忤hich historical or fictional character do you most identify with?바카라 사이트�, Paul replied, with characteristic modesty: 바카라 사이트廸elson Mandela바카라 사이트�.

[History will determine!]

Paul, congratulations on the achievements of your Presidency, and thank you for the leadership you have shown.

It was Nelson Mandela, reflecting on his first 100 days as President, who noted that 바카라 사이트徙n occasion, strong language has been used to drive home a strongly held belief바카라 사이트�바카라 사이트ｦ

바카라 사이트ｦand he reassured his audience that this was a sign of 바카라 사이트彗 robust, vibrant democracy, with broad consensus on the most important national questions바카라 사이트�.

Paul, I will welcome your speech tonight as a sign of our 바카라 사이트徨obust, vibrant democracy바카라 사이트�!

Because we are in broad agreement on the big questions facing our country and our economy.

We agree that:

We must rebuild a consensus for the liberal market economy as the best way to deliver future prosperity.

We must embrace digital technology, and ensure Britain is at the forefront of the technological revolution.

We must invest in skills and training 바카라 사이트� to ensure the next generation is prepared for the economy of the future.

We must build the world class infrastructure and invest in the R&D needed to ensure Britain stays ahead in the global race.

We must raise our productivity 바카라 사이트� and thus deliver higher wages for people up and down this country.

And yes, we must deliver a Brexit that prioritises jobs, growth, and prosperity.

And it is absolutely my belief that central to all of this, is listening to business, and believing in the power of business to deliver higher living standards, and spread greater prosperity.

I can promise you, Paul, business advice is a welcome input, not an 바카라 사이트彿nconvenient truth바카라 사이트�!

So I hear the concerns you have set out tonight about the Brexit challenge바카라 사이트ｦ

바카라 사이트ｦbut I remain confident. And, by the way, when Donald Tusk says Brexit is the 바카라 사이트徭addest moment in Modern European history바카라 사이트�바카라 사이트ｦ

바카라 사이트ｦI assume he didn바카라 사이트冲 see this year바카라 사이트冱 Eurovision.

The PM has always had a vision for a close economic partnership between the UK and the EU바카라 사이트ｦ

바카라 사이트ｦa partnership that protects supply chains, and established trade relationships바카라 사이트ｦ

바카라 사이트ｦthat backs businesses, and safeguards jobs바카라 사이트ｦ

바카라 사이트ｦand that promotes the values that we share across the continent of Europe.

We have made good progress:

In March we agreed on an implementation period바카라 사이트ｦ

바카라 사이트ｦwhich allows 바카라 사이트彙usiness as usual바카라 사이트�바카라 사이트ｦ

바카라 사이트ｦand ensures you only have to navigate one set of changes.

Focus has now moved on to our future economic partnership, and in particular the customs relationship.

I have listened to the four customs tests you have set out tonight바카라 사이트ｦ

바카라 사이트ｦand we share your aspirations to minimise frictions and burdens바카라 사이트ｦ

바카라 사이트ｦto avoid new barriers in Ireland바카라 사이트ｦ

바카라 사이트ｦand to grow Britishexports.

But we do not agree that staying in the customs union is necessary to deliver them.

The UK has proposed two possible future customs models바카라 사이트ｦ

바카라 사이트ｦboth are 바카라 사이트忤orks in progress바카라 사이트�바카라 사이트ｦ

바카라 사이트ｦbut we are confident that, building on these two models, we can develop a solution that will allow us to move forward while meeting your concerns, Paul.

And beyond customs, we will seek a comprehensive system of mutual recognition to ensure that, as now, products only need to undergo approvals in one country to show that they meet regulatory standards across Europe바카라 사이트ｦ

바카라 사이트ｦand we will explore the terms on which the UK could maintain a relationship with the EU agencies, such as those for the chemicals, pharmaceutical, and aerospace industries바카라 사이트ｦ

바카라 사이트ｦas the route to deliver such an outcome.

On services, we have the opportunity to establish a broader agreement than ever before바카라 사이트ｦ

바카라 사이트ｦincluding continued recognition of professional qualifications, and a labour mobility framework that enables travel to provide services to clients in person.

And an opportunity to seek a bespoke partnership in financial services바카라 사이트ｦ

바카라 사이트ｦthat will enable the ongoing delivery of cross-border financial services in both directions, while protecting financial stability and maintaining fair competition.

We made good progress in December and March, and I hope and expect we will make further progress at the upcoming June Council.

It is in the interests of both the UK and the EU to secure a mutually beneficial deal that will allow us to continue to have a close economic partnership바카라 사이트ｦ

바카라 사이트ｦand to do so as soon as possible to give businesses the certainty they need.

I am confident that we will reach such a deal.

That is my most immediate priority as Chancellor.

But as we embark on a technological revolution that will transform our economy and our lives바카라 사이트ｦ

바카라 사이트ｦmy most important long-term challenge is to ensure that the UK continues to be at the forefront of that technological revolution, leading the world in innovation.

This is what our Modern Industrial Strategy is all about.

It isn바카라 사이트冲 about picking winners바카라 사이트ｦ

바카라 사이트ｦor propping up failed industries.

But about exploiting the synergy between the facilitating power of the state바카라 사이트ｦ

바카라 사이트ｦand the energy of the private sector바카라 사이트ｦ

바카라 사이트ｦto deliver the innovation that will secure Britain바카라 사이트冱 future바카라 사이트ｦ

바카라 사이트ｦwithin a market that is working properly and fairly.

Supporting entrepreneurship to ensure the industries of the future get off the ground바카라 사이트ｦ

바카라 사이트ｦinvesting in research and development바카라 사이트ｦ

바카라 사이트ｦensuring that start-ups can access the finance they need to become 바카라 사이트徭cale-ups바카라 사이트�바카라 사이트ｦ

바카라 사이트ｦand, most importantly, creating an environment where innovation can flourish.

And we바카라 사이트决e putting our money where our mouth is바카라 사이트ｦ

바카라 사이트ｦwe바카라 사이트况e committed to the largest increase in public R&D spending in three decades, as part of our ambition to raise R&D investment across the economy to 2.4% of GDP.

We바카라 사이트决e investing ﾂ｣640 million of public money in artificial intelligence and over ﾂ｣1.7 billion in autonomous and ultra-low emission vehicles바카라 사이트ｦ

바카라 사이트ｦand in the Budget last Autumn I launched a plan to unlock over ﾂ｣20 billion of patient capital, for the UK바카라 사이트冱 most innovative firms to grow to scale.

But we won바카라 사이트冲 be able to put the UK at the front of the pack unless we have infrastructure that is fit for the future.

And that is why infrastructure is at the heart of our plan.

In the 18th century, it was canals;

In the 19th, it was the railways, and in the 20th the arterial roads and then the motorways.

In the 21st century, fibre networks will be the enabling infrastructure that drives economic growth.

We바카라 사이트况e already connected more than 95% of the UK to superfast broadband.

But we must now take the next big leap forward.

Full-fibre networks are faster, more reliable, and cheaper to operate than their copper predecessors.

Over a million premises already have direct access to them바카라 사이트ｦ

바카라 사이트ｦ70% of those connected in the last 18 months alone.

But if we are to achieve our ambition of a truly high-speed economy, and keep up with our competitors, then we need a step change in our approach.

So I am now setting a new target to see full-fibre to the premises connections being available to 15 million premises, that바카라 사이트冱 the majority of homes and businesses, by 2025.

This is ambitious바카라 사이트ｦ

바카라 사이트ｦand it will require industry to connect more than 2 million additional premises a year for the next seven years.

We won바카라 사이트冲 do that by government diktat.

We will do it by creating the conditions for the market to deliver바카라 사이트ｦ

바카라 사이트ｦand we will use all the tools at the government바카라 사이트冱 disposal to ensure that target is met바카라 사이트ｦ

바카라 사이트ｦand we바카라 사이트冤l go further, by committing to finish the job 바카라 사이트� and deliver a nationwide full-fibre to the premises network by 2033.

Running both copper and fibre networks indefinitely will not benefit either the consumer or the industry바카라 사이트ｦ

바카라 사이트ｦso we must start thinking now about that switchover and how to sharpen the incentives for industry to move customers away from copper and on to fibre.

And Matt Hancock, the DCMS Secretary, will set out our strategy to deliver these ambitious targets in the Future Telecoms Infrastructure Review, later this Summer.

The talent of the future

The digital industrial revolution and Artificial Intelligence will bring about a step-change in automation.

This, in turn, will have profound implications for jobs, and the way we work.

And if we want our people to embrace the digital economy, we must support them when they are affected by automation바카라 사이트ｦ

바카라 사이트ｦand help them train and retrain into the new high quality jobs of the future.

Because just as the assembly line allowed Ford to triple the number of cars produced per worker바카라 사이트ｦ

바카라 사이트ｦcut the price of a car in half바카라 사이트ｦ

바카라 사이트ｦand increase employment eleven-fold바카라 사이트ｦ

So the digital industrial revolution will also create millions of new jobs, and huge increases in living standards바카라 사이트ｦ

바카라 사이트ｦbut that will not reassure those whose current jobs will be displaced.

So, between us in government and business we have a vital role in managing this transition;

In investing in skills and retraining;

In providing the reassurance our workforce will need.

We have made a start.

Through the Apprenticeship Levy, we are increasing the quality of apprenticeships, and the capacity of the system.

We바카라 사이트况e already seen a 25% increase in higher level apprenticeship starts.

But I recognise the new levy system presents some challenges바카라 사이트ｦ

바카라 사이트ｦand we바카라 사이트决e listening to your concerns around flexibility, and will keep that issue under review to make sure the levy works as intended.

We바카라 사이트决e investing over ﾂ｣500 million a year in our new T-Level technical qualifications바카라 사이트ｦ

바카라 사이트ｦand with the help of the CBI and the TUC we are establishing a new National Retraining Scheme바카라 사이트ｦ

바카라 사이트ｦto help adults faced with the consequences of technological change to re-train throughout their working lives.

It바카라 사이트冱 a groundbreaking collaboration and I바카라 사이트冦 delighted we were able to make it happen through the leadership of Paul and others here tonight.

But government cannot solve our nation바카라 사이트冱 productivity challenge on its own.

Because it is not only about infrastructure and skills바카라 사이트ｦ

It is also about management.

Britain of course has many world-leading companies with globally competitive productivity바카라 사이트ｦ

바카라 사이트ｦbut there are also far too many that could be doing a lot better.

Tomorrow I will publish a call for evidence into why some businesses aren바카라 사이트冲 keeping up and don바카라 사이트冲 learn from the best바카라 사이트ｦ

바카라 사이트ｦseeking ideas for how government and industry can work together to help more firms realise their potential by taking best practice.

And in parallel with the call for evidence I will announce with Greg Clark, the Business Secretary, further steps to boost firm-level productivity.ﾂ�

We바카라 사이트冤l invest ﾂ｣5.6 million to support smaller firms to adapt modern management practices and simple digital technologies, through two new pilot programmes delivered by Charlie Mayfield바카라 사이트冱 Be the Business.

And we바카라 사이트决e extending our backing for the Made Smarter Digital Manufacturing strategy바카라 사이트ｦ

바카라 사이트ｦled by Juergen Maier 바카라 사이트� and supported by the CBI.

Made Smarter will help to maintain our position as a global leader in the digital revolution바카라 사이트ｦ

바카라 사이트ｦand so we바카라 사이트冤l provide ﾂ｣20 million for a pilot in the North West, to support SME manufacturers to adopt industrial digital technologies, such as robotics and data analytics.

Before I close, I want to touch on one further, important issue.

I have talked about the big opportunities ahead;

But there will be big challenges too 바카라 사이트� and challenges that go beyond the mere uptake of technology바카라 사이트ｦ

바카라 사이트ｦto pose questions about economic governance and the organisation of society in the 21st century digital economy.

For those of us who believe in the demonstrated power of liberal market economics to deliver both prosperity and political freedom바카라 사이트ｦ

바카라 사이트ｦthis is a question about how this most resilient of economic models transforms itself in response to the challenges of technological and societal change바카라 사이트ｦ

바카라 사이트ｦas it has done so many times before.

But if you are a politician [political content removed]

바카라 사이트ｦyour prescription will be very different.

For people of my generation 바카라 사이트� and looking around the room at many 바카라 사이트� though not all 바카라 사이트� of you, I see people who I think are of my generation바카라 사이트ｦ

바카라 사이트ｦcongratulations that you can still get out of an evening!

For people like us, who lived through the 1970s, the economic model [political content removed] is not a text book theory, but a vivid memory.

And for people in a small number of countries around the globe, it is a miserable reality today.

But not everyone in our society has shared that experience.

And some of a younger generation will be tempted by ideas that sound radical; maybe even 바카라 사이트從ew바카라 사이트� (even though they are rooted in a book written in the 1860s).

바카라 사이트ｦbecause they do not feel the system is working for them.

Many of them have started their working lives at a difficult time for our country바카라 사이트ｦ

바카라 사이트ｦemerging into the workforce as the financial crisis and its aftermath shook our system바카라 사이트ｦ

바카라 사이트ｦand enduring a decade of recovery from it.

They look at their parents바카라 사이트� and their grandparents바카라 사이트� generations바카라 사이트ｦ

바카라 사이트ｦat the home ownership levels, the defined benefit pensions, the traditional jobs바카라 사이트ｦ

바카라 사이트ｦand they ask who or what decreed that so many of the things that previous generations took for granted, should be so much harder for them to obtain.

They are not looking for a hand-out바카라 사이트ｦ

바카라 사이트ｦbut they are looking for a reassurance that hard work will allow them, too, to achieve their aspirations for a better life for their kids.

And as we look forward to, and prepare for, the transformational impact that technology will have on our economy and our society바카라 사이트ｦ

바카라 사이트ｦwe must answer their challenge.

We must articulate how we will refresh our economic model to respond to technologicial change바카라 사이트ｦ

바카라 사이트ｦin competition policy바카라 사이트ｦ

바카라 사이트ｦin taxation policy바카라 사이트ｦ

바카라 사이트ｦin ensuring an equitable distribution of the proceeds of growth as we manage the impact of smart automation and artificial intelligence on the world of work바카라 사이트ｦ

바카라 사이트ｦso that it speaks to their values바카라 사이트ｦ

바카라 사이트ｦaddresses their concerns바카라 사이트ｦ

바카라 사이트ｦand unlocks the door to the achievement of their aspirations바카라 사이트ｦ

바카라 사이트ｦwith solutions, which are framed not by the stale ideologies of the past, but by the exciting potential of our future.

Solutions that build on, not undermine, the liberal market economy that is the bedrock, not only of our prosperity바카라 사이트ｦ

바카라 사이트ｦbut of our freedom too.

I have spoken tonight of our strategy for negotiating Brexit바카라 사이트ｦ

바카라 사이트ｦand of our vision for post-Brexit Britain.

It is a vision of an open, dynamic, evolving, market economy바카라 사이트ｦ

Of a Britain whose firms are at the cutting edge of technology and innovation.

A Britain with infrastructure fit for the future바카라 사이트ｦ

바카라 사이트ｦand workers equipped with the skills they need for the challenges that lie ahead.

A Britain where government and business work together to realise the potential of unlocking Britain바카라 사이트冱 productivity puzzle바카라 사이트ｦ

바카라 사이트ｦto deliver an economy that works for everyone.

That is our vision of the prize that lies within our grasp.

And I know we can count on British business to work with us to deliver it for the British people.

Thank you.

Published 22 May 2018

Chancellor speech: CBI Annual Dinner 2018

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Chancellor speech: CBI Annual Dinner 2018

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