CBI president warns against inflation during levelling up conference event

The president of the CBI, Lord Karan Bilimoria, has warned that the government’s levelling up agenda is in danger of clashing with the UK’s economic recovery from the pandemic.

During a Compass fringe event on levelling up in the hospitality sector, Lord Bilimoria stressed that increasing wages without matching productivity would ‘inevitably lead to inflation.’

Lord Bilimoria noted that recent fuel, energy and labour shortages have left the hospitality industry’s recovery in a “fragile” place.

Boris Johnson has argued against a more open immigration policy in recent days, calling on employers to pay higher wages to plug skill gaps.

The former education secretary Justine Greening also spoke at Compass’ fringe event.  Justine Greening lamented the inability of many hospitality workers to progress their careers in the industry, arguing that a “big debate” was needed in Britain about “people stuck in jobs in jobs with no prospects.”

Hospitality has been one of the most impacted sectors due the pandemic, with output in the sector falling 67% below pre-pandemic levels in Janurary 2021.