50% of the working population believe the UK’s status as a global power is decreasing, according to a Deloitte/YouGov survey of attitudes to global economic competition. Only 5% believed the UK’s status was increasing and 36% believed it to be ‘stable’.

John Kerr, Managing Partner for Innovation at Deloitte, commented: “The global competitive outlook for the UK economy is an issue the public is becoming increasingly concerned about. This isn’t surprising considering we face rapid global change with the advancing economies of China and India and an increasingly mobile workforce is adding to public uncertainty.

“Boosting UK exports to the rapidly emerging Asian economies will be vital going forward - we currently lag far behind the US and other economies on this front - yet there is huge opportunity in these growing consumer markets. The measures outlined in the Chancellor’s Pre-Budget Report have the potential to impact significantly on the UK’s future competitive position and the creation of an Asia Task Force with the primary objective of increasing UK export to these economies is extremely positive. A priority for the task force should be helping UK companies exploit their high value IP in the lower cost economies.”

Investing in education and training was considered to be the most important action for the UK to ensure other countries do not overtake its competitive position and while 69% of respondents believe the government is responsible for the UK maintaining its position as a global power, 38% believe it is the responsibility of business.

John Kerr commented: “There is recognition of the need for government and business to take a joint role in driving forward skills development in the UK and the Leach recommendations, along with the appointment of a skills envoy to share this responsibility, support this.

“The UK has passed the point of no return on its route to a knowledge-based economy and raising the bar for standards in education is vital if the UK will in future depend upon a highly skilled workforce. Increased investment in education - particularly the £60 million dedicated for applied research - are key developments for the UK to build on and maintain its world leadership in innovation, science and technology.

“Greater measures are needed to improve the environment for business start ups, particularly if we are to achieve the target of American rates of business creation and success. Improving the collaboration between leading universities and business would by a positive development in fostering entrepreneurialism.” 

Key findings:

• 65% think the UK should invest in education and training to ensure other countries do not overtake its competitiveness
• 57% think the UK should encourage small business start ups and entrepreneurialism to ensure other countries do not overtake its competitiveness
• 61% of those questioned said they would relocate internationally to be better off financially
• 62% said they would move to improve their work/life balance
• 52% would leave the UK for better education and skills training

China and India are seen as the biggest threats to UK competitiveness followed by the US, Japan and South Korea (full table below). 

UK Population believe that the following countries pose the greatest threat to the UK’s competitiveness over the next 5 years:

Ends

Notes to editor
YouGov interviewed a representative sample of 2044 18+ employed adults between 16 – 20th November 2006.

This time last year a separate Deloitte report, Trading Places, ranked the UK as sixth most competitive place to do business, amongst 25 major world economies. However, this ranking was projected to slide to 12th place within the next five years if UK Government and businesses do not work together to ensure the macroeconomic environment, skills, investment, enterprise and innovation continues to be world class in the UK.
Deloitte Research report Trading Places includes the Deloitte Competitiveness Index (DCI) is a new ranking based on key drivers of wealth creation - innovation, enterprise, investment and macroeconomic data. The report includes a survey of 300 UK business leaders who provide their perspective on the UK’s business environment today as well as predictions for the future.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.