NatWest Executive Calls for Government Stability to Support Businesses in Turbulent Times
Robert Begbie, the CEO of Commercial and Institutional at NatWest, has emphasized the critical need for the Government to provide reassurance and stability to businesses, both large and small, during periods of global crisis. During a visit to the bank's Manchester business accelerator in Spinningfields, Begbie met with entrepreneurs and discussed the challenges and opportunities facing the UK economy.
Government's Role in Ensuring Business Confidence
In an interview with BusinessLive, Begbie addressed the impact of recent geopolitical events, such as the conflict in Iran, on market conditions. He stressed that while the Government cannot control international crises, it can foster a stable environment for businesses to operate in.
"The Government can't control what's going on in the Middle East. That's completely outwith their control," Begbie said. "But stability in the environment for businesses to operate in is hugely helpful."
He pointed out that the Government has initiated various strategies, including industrial and trade plans, regulatory reforms, and growth initiatives, which are essential building blocks for a sustainable, high-productivity economy. However, these measures require time to yield results, and in the short term, uncertainty from global events can damage fragile business confidence.
"It's too soon to say that what's happened in the last two weeks is going to permanently damage that, but clearly in the short term it just introduces uncertainty," Begbie added, noting that businesses had recently shown growing optimism before the latest shocks.
The Vital Importance of Mid-Market Firms
Begbie highlighted the significance of mid-market companies in driving economic growth, particularly in regions like Manchester. NatWest has seen a 50% year-on-year increase in lending to this sector, indicating strong activity.
"If our lending book is growing in the mid market we know there's something good going on in the UK mid market," he stated.
He explained that mid-market firms are often overlooked by policymakers in favor of large corporations or start-ups, yet they are responsible for substantial employment and growth. A 1% growth in this sector can have a multiplied impact on the economy. To support these businesses, NatWest has appointed 12 Mid-Market Champions across UK nations and regions and recently hosted a reception at 11 Downing Street with the Chancellor.
Steve Sankson, North West regional director, echoed this sentiment, pointing out that mid-market businesses in Greater Manchester are growing and innovating faster than in any other region. He emphasized the need for targeted support to address common issues like skills shortages and regulatory burdens.
Accelerator Hubs and University Partnerships
Begbie expressed enthusiasm for NatWest's network of accelerator hubs, which support start-ups and scale-ups across the country. The Manchester accelerator has assisted hundreds of entrepreneurs, offering training on pitching to investors and other business skills.
"I'll tell everybody who works for us to go to an accelerator. We're helping people live out their dreams here," he said, citing success stories like a Birmingham Accelerator alumnus that grew into a £50 million business.
Additionally, NatWest is expanding its accelerator network by partnering with universities. The bank plans to establish accelerators in 10 universities nationwide, with four already announced, including a clean transport accelerator at Warwick University. A strategic partnership with the University of Manchester aims to enhance student employability and foster innovation by commercializing academic ideas.
Looking Ahead: Collaboration for Economic Prosperity
Begbie concluded that a collaborative effort involving the Government, banks like NatWest, and businesses is essential to stimulate growth and create a more prosperous economy. He urged all parties to work together to build resilience and seize opportunities amid uncertainty.
"We all have the same objective here – everybody in the room wants to help stimulate growth and make the country a more prosperous place," he remarked, emphasizing the shared goal of economic advancement.
