THE REAL DEAL
I went to Davos Way, Skegness to find what Brits really care about as elite gather in Switzerland – it was surprising
The Government’s 'nanny state approach to business' was repeatedly attacked at our 'Davos' forum
The world’s richest and most powerful people gather at the sleepy Alpine village of Davos in Switzerland this week for the World Economic Forum.
Their aim? To save the world — but the real world could not be further away from this annual chin-stroking session for the global elite.
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So The Sun headed to Davos Way in Skegness for our own Sun Economic Forum to get to the heart of what REALLY matters to you.
Local pub, The Welcome Inn, hosted our gathering of six typical British businesses for a debate about the challenges facing the economy and the answers to the Government’s quest for growth.
Although PM Keir Starmer isn’t going to Davos, Business Secretary Jonathan Reynolds and Chancellor Rachel Reeves are jetting in today to promote the UK’s “connectivity, openness and opportunity”.
We’re getting hammered. We’ve had to let restaurant staff go. And once I heard about the Employment Rights Bill I stopped hiring staff, because I could hire someone and then day two they go off on sick.
Abbie Marshall, landlady and restaurant owner
But according to our forum of pub landlandy, construction firm, Grimsby seafood provider, local distiller and banking upstart and London cabbie, the Government’s lack of understanding is cutting off opportunities.
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“They simply don’t understand business”, Abbie Marshall, a landlady and restaurant owner, said of the Government.
Abbie blamed the Budget tax raid — which includes hikes to employers’ National Insurance Contribution, minimum wage increase and changes to business rates — for strangling growth.
She said: “We’re getting hammered. We’ve had to let restaurant staff go. And once I heard about the Employment Rights Bill I stopped hiring staff, because I could hire someone and then day two they go off on sick.”
Like others, Abbie said there was a limit to how high she could raise prices to cover the extra costs before customers would “say it was too much, and buy their beer at Tesco instead, which doesn’t have the high VAT costs.”
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Meanwhile, a slump in confidence in the economy and government is already affecting business.
Grant Davis, who drives a black cab, reckons taxis are a barometer for the economy.
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‘Nanny state approach’
He said: “When people feel good with money in their pocket, they’re eating out, going to the theatre, getting a taxi rather than the train.
“But it’s already getting quiet. I was surprised how quick it happened after Rachel from Accounts started talking.”
James Graham, who runs construction firm Oakwood Building with his father, said the lack of confidence in the economy meant that while Labour had set out bold ambitions for 1.5million new homes, construction firms “were the quietest they have been”.
James attacked planning rules for holding back building, with even small firms required to buy plots of land to hit environmental targets.
He added: “Their target is never going to happen. When there is a housing crisis, building firms should not have to diversify into other areas to survive, but we have set up holiday lets because we need work.”
The Government’s “nanny state approach to business” was repeatedly attacked at the forum.
Richard Longworth, owner of Skegness Distillery, described the Government’s move to hike pay for public sectors as a transfer “from the public purse to the public sector rather than helping business create growth and employment”.
Dave Burke, chief executive of NW Mutual, plans to open mutual bank branches in the North West.
He added: “We’ve seen over half of the branch network close. We now have local constituencies that don’t have a branch network at all and the ones that are open tend to operate working hours of nine to five or nine to 12 on a Saturday which doesn’t work for firms.”
Dave also highlighted a “halving in lending to SMEs (small and medium-sized enterprises) in the last decade” even though 99 per cent of businesses are small firms.
Andrew Moorcroft, owner of Grimsby business Moorcroft Seafoods, said that fish and chip shops are shutting across the country in the face of increasing staffing costs.
We’ve got pensioners having to choose between heating or eating while we’ve got the most expensive energy costs in the world.
Grant, local cabbie
He added: “It’s will be hard getting any more money off chippies.”
The firms we spoke to, which represent the everyday economy, aren’t afraid of technology.
Richard revealed he had already been using artificial intelligence to help with labelling and new gin recipes, while Dave Burke said AI can help with customer profiles.
But the NW Mutual boss raised concerns that if AI is widely employed to analyse customer risks it could lead to “computer says no” responses that would cut off even more lending to firms.
Meanwhile, soaring power costs were singled out as the biggest challenge, with Energy Secretary Ed Miliband in the cross hairs.
London cabbie Grant said: “We’ve got pensioners having to choose between heating or eating while we’ve got the most expensive energy costs in the world.”
Our business owners agree that while shifting away from a reliance on fossil fuels was a nice idea, there was no point in stiffing customers with higher bills in the race for a meaningless 2030 deadline.
And firms reckoned the Government could do with real business experience, much like Elon Musk’s role for new US President Donald Trump to cut government waste, and embrace American optimism.
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Construction boss James argued that there needed to be a British version of the American dream to boost the country and economy.
In Switzerland the theme of Davos is meant to be “Collaboration for the Intelligent Age” — but in Skegness there were plenty of bright ideas closer to home.
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