North East businesses meet with Bank of England to discuss current economic climate
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North East businesses and organisations met with the Bank of England and shared their views on the current economic conditions in the region.
Representatives heard first-hand from Dr Catherine Mann, Monetary Policy Committee member, who shared her views on the current monetary policy in line with her committee remit.
The roundtable, organised by the North East England Chamber of Commerce, covered topics including the cost of living crisis, devolution, and recruitment and skills.
Despite the cost of living crisis, businesses are still investing but are prioritising where they spend their money, and projects are taking longer. Companies are also finding it hard to distinguish if additional costs are “baked in” or short term.
Businesses emphasised that stability is needed. Interest rate changes could become more manageable if they were predictable and clearly signposted.
Companies are still working to get people into recruitment. Some of the changes brought by Covid offered a note of optimism. Firms and organisations described being more imaginative in areas like recruitment, helping to serve their local communities better.
With national evidence suggesting that the cost of living crisis is causing some people who took retirement to think about work again, the roundtable discussed the importance of creating opportunities for older people to come back into the workplace. This “hidden layer of talent” could have a positive impact on current recruitment challenges.
Skills was also on the agenda, and businesses said working together is key to keeping local, home-grown talent in the North East, as well as filling employment gaps.
John McCabe, Chief Executive, North East England Chamber of Commerce, said: “Opportunities like this ensure the Chamber continues to get our member’s views and voices directly to national decision makers.
“Everyone at the roundtable agreed collaborative working would be central to a successful 2023, and that’s exactly what we encourage and facilitate at the Chamber. Our thanks to the Bank of England team in the region for enabling such a valuable and important conversation.”
Gareth Harrison, North East Deputy Agent, Bank of England, said: “Our policymakers really value events like this, which give them a vital insight into economic conditions in the region. These discussions help to inform key policy decisions, such as the setting of interest rates and Catherine was able to gain some rich economic intelligence from the contacts in the room.”
The meeting was held yesterday (16 January) in The Catalyst in Newcastle, which is home to the National Innovation Centre for Ageing and the National Innovation Centre for Data.