Economy is turning a corner: UK PM Rishi Sunak attempts optimistic reset

London: British Prime Minister Rishi Sunak on Monday attempted an optimistic reset amid reports of growing unrest within his own Conservative Party ranks as he unveiled a new package of reforms for small businesses and insisted the UK “economy is turning a corner”.

The British Indian leader referenced his family-run pharmacy in the southern England port city of Southampton, where he was born and helped out as a schoolboy, as an example of his first-hand small business experience.

In an indirect message for the rebels, he stressed that it was important to stick with the plan for the economy that was working after a tough couple of years.

“There is now a real sense that the economy is turning a corner with all the economic indicators pointing in the right direction,” Sunak said during a Business Connect event in Warwickshire, in the Midlands region of England.

“This year, 2024, will be the year Britain bounces back… inflation has more than halved and is falling fast, growth is higher than anyone expected, debt is on track to fall; we are not there yet but we are absolutely moving in the right direction. So, let’s stick to the plan and build a better, brighter future together,” he said.

Under the new package of measures, the UK government will fully fund apprenticeships in small businesses from April 1 by paying the full cost of training for anyone up to the age of 21 – reducing costs for businesses and delivering more opportunities for young people to kick start careers.

The move is underpinned by an additional GBP 60 million of new government funding for next year to support apprenticeships and also cut red tape.

“Growing up in my mum’s pharmacy, I know first-hand how important small businesses are. Not just for the economy, but as a driver for innovation and aspiration, and as the key to building a society where hard work is always recognised and rewarded,” said Sunak.

In what was his first major speech on the economy since the Spring Budget earlier this month, Sunak insisted that the new measures will unlock a “tidal wave of opportunity” and make a real difference to businesses and entrepreneurs across the country.

“Whether it’s breaking down barriers and red tape for small businesses, helping businesses hire more young people into apprenticeships and skilled jobs or empowering women to start up their own businesses – this government is sticking to the plan and leaving no stone unturned to make the UK the best place to do business,” he added.

The new measures aim to help small and medium enterprises (SMEs) hire more apprentices by reducing costs and enabling more employers to get the skilled workers they need. Taken together, the measures are targeted at enabling up to 20,000 more apprenticeships, primarily for young people.

"Whether it’s through cutting red tape, unlocking investment or lowering business costs, today’s announcements show that this government is committed to doing all it can to turbo-charge SMEs so that they can go further and faster than ever before,” said UK Business and Trade Secretary Kemi Badenoch.

During a round of interviews earlier, the senior Cabinet minister also appealed for party unity amid rumours of a leadership challenge to Sunak ahead of a general election expected later this year.

“I have said many times that people need to stop messing around and get behind the Prime Minister,” she said.