Arora Group Founder Surinder Arora Talks UK's Business Outlook

Europe's economy

• Surinder Arora · Arora Group

  UK budget was flat; welfare and NHS spending are poorly managed and UK debt is rising.

  Arora calls the budget 'fairly flat' and says the government has a lot of debt and must be careful. He argues that a £100 benefit payment to about 20 million people, costing around £2bn, was unnecessary and politically motivated rather than fiscal discipline. He says the UK has two problems: the welfare and benefit system, and the NHS. He argues that the NHS has plenty of money but no government has tackled why spending is so high while service delivery is poor. He says the benefits culture is 'dragging down' public finances and pushing debt levels up.

  “There's plenty of money in the NHS, but no one, no government in my memory have ever tackled the underlying issues why there's so much spend and yet the service and the delivery isn't there.”at 3:59

• Surinder Arora · Arora Group

  Rising UK business taxes and wage costs are making the country uncompetitive and risk stalling growth.

  Arora runs a UK hotel business. He says businesses are very cautious about costs, which go beyond the wage bill. He cites the planned minimum wage increase, which would add a few million pounds to his own wage bill, with many other companies facing the same. He argues that 'you can only keep going up so much before that plane starts stalling'. He says the UK has been 'just taking, taking, taking' from business and that the approach of tax and squeeze makes the country 'really becoming so uncompetitive', while acknowledging the government's debt problem.

  “So you can only keep going up so much before that plane starts stalling. ... we are ... becoming so uncompetitive.”at 5:19

• Surinder Arora · Arora Group

  UK policy drives entrepreneurs and wealthy residents abroad; an investor visa would not offset that.

  Arora argues that the UK has already driven many entrepreneurs and business people out of the country through high taxes and a 'jealousy factor' toward wealth creators, so creating an investor visa now is contradictory. He compares the UK unfavourably with Italy, Portugal and Dubai, where people are welcomed if they create jobs and pay taxes. He says he personally considered leaving after the previous budget, but argues that the UK should be attracting entrepreneurs and job creators, not pushing them out.

  “so many entrepreneurs, business people leave the country, and then you want to start the investor visa. ... Let's just keep going after the entrepreneurs and the rich people so then you drive them out.”at 8:02

• Surinder Arora · Arora Group

  UK hospitality, care and tourism face labour shortages; the government should admit more workers.

  Arora says the UK cannot get enough workers in hospitality, care and travel and tourism. He stresses that travel and tourism make up more than 10% of UK GDP. He argues that the government should encourage people who want to come and work and pay taxes, a win-win that would help his own industry, which struggles to employ people.

  “We cannot get enough resource whether in hospitality sector, in the care sector, travel tourism. ... Travel tourism is more than 10% of our GDP.”at 8:48

• Surinder Arora · Arora Group

  New founders relief helps young entrepreneurs, but the £10m cap is not ambitious enough.

  Arora says the new founders relief does not make a personal difference to him, but he thinks it will matter for young entrepreneurs and people coming into the country. He says the UK should be aiming higher and welcoming large entrepreneurs who set up businesses and employ thousands of people. When asked whether the £10m limit is enough, he says 'you can always do a lot better in my view', so the policy is not ambitious enough.

  “it definitely makes a different difference for young entrepreneurs, for people coming in. ... You can always do a lot better in my view.”at 9:33