2025 East Midlands economic challenges and growth opportunities addressed at conference

The effect of government policy changes and supporting the needs of the region’s business community were among topics discussed by business leaders and academics at East Midlands Chamber’s State of the Economy Conference which was held on 5th December.

Held at the University of Leicester School of Business, a series of talks and panel discussions sought to reflect on the performance of the East Midlands economy throughout 2024 and define support needed to enable growth in 2025. 

East Midlands Chamber Director of Policy and Insight Richard Blackmore shared analysis from the Chamber’s latest Quarterly Economic Survey and chaired panel discussions.  

Speaking afterwards he said: “The East Midlands is uniquely placed as a Centre of Trading Excellence with a wealth of growth potential, yet 2024 has seen significant economic events that directly affect considerations businesses must make as they plan ahead. The impact of factors like interest rate changes, regional and national political change and the first Industrial Strategy in years underline the need to identify economic risk but also explore growth opportunities.

“The research we conduct in our Quarterly Economic Survey gives the strongest indication of pressure points experienced first-hand by businesses in the East Midlands, how they react to challenges and secure their future.  Bringing business leaders and academics together to share their insight at this conference will be really beneficial in shaping how to best support business as we head into 2025.”

East Midlands Chamber President Stuart Dawkins opened the conference.  He said: “Conferences like this are important. There is an intersect between academia and business, yet you get business not quite understanding academia and academia not quite understanding business.  Against the current economic pressures and issues, I think there's more feeling of togetherness now. 

“What was really interesting was the backdrop; the conference has come at the end of  a period of instability locally, nationally and in the world with a lot of headwinds, particularly for businesses.  The overall sense was that there’s opportunity in the East Midlands.  We are underfunded as a region, but we’re extremely positive, and in our use of government funding we have better return on investment than any other region.  What we've not been as good at is in pulling together.”

University of Leicester Dean of Research and Enterprise, Leicester School of Business Mat Hughes participated in a panel discussion on what businesses want in the next 12 months.  He said: “The government needs to give a positive environment and set signals to businesses that will encourage them to feel confident to invest and react. Investment is not something that necessarily pays off immediately, but if we're going to grow and change productivity, then businesses need to invest in human capital, they need to invest in digitalisation, technology and machines, in new opportunities or R&D.

“Conferences like this are critical from many different points of views. You get lots of voices and stakeholders in the same room so they can understand and learn each other's perspectives.  You get to get your finger on the pulse to see what the key priorities are, that we can then form strategies around to communicate with government, with associations and drive investment.”

Bank of England Deputy Agent for the East Midlands Jamie Jordan gave a talk on the Bank of England’s views on the economy and said: “The insight you get from people on the ground collaborating together at a conference like this is of greater value than just being able to read the data statistically, and for us, it's being able to answer why trends are emerging or changing and what the key issues are that we need to be thinking about to get to grips with the challenges and opportunities today.

“We're pleased with how the disinflationary process is going. A gradual approach towards monetary policy restraint is, we think, the most appropriate to ensure that we eradicate remaining inflationary pressure that exists in the economy, and that will help us get back to the 2% target.  We're feeling more positive about where we are today, but there are clearly events and developments that we'll need to take account of over time.”

East Midlands Councils Executive Director Stuart Young gave a presentation on the role of EM Councils and the objectives of the All-Party Parliamentary Group (APPG).  He said: “Business is the key.  Council leaders and MP's have a direct route into government, but they need to hear from the business community.  Growth can be driven out of our proposals and the alliance between businesses, MP's and council leaders is absolute.  For our region, transport infrastructure investment is an enabler.  It delivers growth, in terms of construction, but enables growth and longevity of growth.  For our region that's important.  You shouldn’t work in isolation; you need conferences like this where you get a chance to mix it up and have a candid discussion.”