Business leaders on the money as Governor listens to concerns over skills, carbon capture and private sector investment

The Governor of the Bank of England, Andrew Bailey (centre) pictured with (from left) Dr Ian Kelly, Andrew Dawes from ABP, Chamber President Kirk Akdemir, and Tim Shaw from KCOM.

THE Governor of the Bank of England, Andrew Bailey, told an exclusive guest list of Humber business leaders that he hoped there would be a further cut of interest rates in November, however, he was keeping a close eye on events in the Middle East as the conflict threatens to affect oil prices which in turn could drive inflation.

This was the Governor’s second event with the Chamber in two years, having hosted a breakfast meeting in Hull in 2022, but this time wanted to engage with Northern Lincolnshire businesses over lunch at Healing Manor Hotel in North East Lincolnshire.

The Governor’s latest visit to the Humber was so he could better appreciate the opportunities to the economy of carbon capture and inward investment, although he reminded his lunch guests of his historic connections with Grimsby when, in his role as Deputy Governor, he worked with former Grimsby MP Austin Mitchell after the financial crisis to get trade and cashflow working again between Iceland and the Humber.

Among the guests, was Vladimir Langhamer representing the Prax Refinery on the Humber Bank, which hosted the Chamber’s northern Lincolnshire members for a tour and meeting last year. Prax is now firmly operating as a British business which is looking to support carbon capture and commit to the local economy and its supply chain and support skills training as part of the wider Humber economy.

Andrew Dawes, the new Humber Director for ABP, explained how he was back in the UK after 20 years abroad and was aware of the projects they have money for, which have been delayed due to planning issues, while clarity on policy direction from the new Government would be helpful.

Chris Girdham, from Cory Group, raised the thorny issue of having a single Humber Mayor and felt bringing the area together was essential to tackle the skills issues and deliver private sector investment. This got a general nod of approval from around the table.

The Governor was seized by the unanimous theme of the drastic skills shortages faced by Humber business, highlighted by most guests.

Another issue raised with the Governor were the concerns around the loss of local banking facilities, particularly in the supply chain for small firms on the south bank, where, despite the promise of local banking “hubs”, they have yet to become well established. While internet banking has become popular, it isn’t for everyone, and can be particularly challenging for older people, along with smaller businesses in the supply chain as it was highlighted that business people do need face-to-face support at times.

The Governor commented that he was using cash less – and as the former Chief Cashier, he loves the stuff! While cash is used less, it is all out there somewhere, he said, adding that the Bank has no plans to withdraw cash from the market. Most people keep some cash and there is around £80-billion of it in the UK economy.

Wrapping up the meeting, the Governor thanked Ian, Kirk and the Chamber for organising what had been an excellent lunch and valuable insight into the concerns of leading and smaller Humber businesses.