How the government and business doubles down on services within industrial and trade strategies
The UK’s strength as a services powerhouse is indisputable, with the service industries accounting for over 80% of total economic output (GVA) and 8 in 10 jobs.
However, between the first quarters of 2023 and 2024, the UK had the fifth highest services trade growth in the G7 – trailing Italy, the US, Canada and Japan. So how can we grow our services exports and remain competitive on the global stage?
To harness the UK’s services superpower, it is more important than ever that the government works closely with business as it develops new industrial and trade strategies. Critical first steps include acknowledging the complexity of these industries, understanding how we trade in services, and listening to business on the actions that are needed to unleash potential.
‘Serving Up Success’ is a collective vision, brought together with members of all shapes and sizes – from finance to recruitment to aviation to pharmaceutical to professional services to creative and more.
We have identified clear actions that the government can take to double down on our services economy and take this success story to even greater heights – for the benefit of communities, businesses and people across the country.
The recommendations
Signalling intent to boost confidence
- Communicate a clear pipeline on all agreements, from Free Trade Agreements to sector-specific agreements
- Publish a new digital trade position with refreshed areas of focus reflective of our evolving digital world
- Develop a strong trade promotion programme, ringfencing specific funding and working across departments.
Unlocking growth through proactive measures
- Negotiate reciprocal mobility agreements with key trading partners, prioritising intra-company transfers and short-term business travel
- Implement a modern, flexible and digitalised immigration system which can respond quickly to the needs of business
- Deliver clear paths for Mutual Recognition of Professional Qualifications with relevant jurisdictions
- Commit to better utilising the EU-UK Trade and Cooperation Agreement’s specialised committees to foster greater regulatory cooperation
- Create mechanisms through which regulators can work with their counterparts to address barriers to trade, including in emerging sectors
- Set up a one-stop shop for services companies to interpret bilateral and multilateral agreements.
Delivering change on the global stage
- Outline basic principles for regulation of emerging technologies
- Pursue the removal of barriers to international data transfers with like-minded countries and trading blocs that share similarly high levels of data protection
- Work with business and international allies to find a permanent, evidence-based solution to the World Trade Organisation’s e-commerce moratorium.
Serving up Success: Growing our services trade
If you are interested in finding out more about the CBI’s Services Trade report and project, please contact Erin Henwood.
