Business leaders in demand for swift action

Sep 28 2009 by Peter McCusker, The Journal

BUSINESS leaders have pressed the Government to continue to take measures to help firms recover from the recession as well as putting the economy on a path to sustainable economic growth.

The CBI and the British Chambers of Commerce both published reports setting out the business agenda in the coming months, ranging from tackling youth unemployment to improving transport infrastructure.

The CBI said that whichever party wins the next general election, action will be needed quickly to boost the economy.

The business group put forward a 12-point agenda it said should be implemented within the first 100 days of the next government taking office.

The measures included developing a strong banking system, working towards a low carbon economy and addressing public sector pensions.

CBI regional director Sarah Green said: “Any new government will have a lot to do in its early days, but the economy must be central to its plans, especially given the state of the public finances and the global downturn.

“Our proposals make clear what the priorities should be to help put our economy on the road to sustainable growth.

“The major political parties really need to focus on the public finances, even though this requires tough decisions. They should make it their ambition to set out a clear, credible plan that would return the budget to balance by 2015.

“The North East business community recognise that in the short term this could cause additional pain for our region due to the strength of the public sector.

“We also emphasise the need for speed. A new administration should act quickly and decisively. This will not only put the right priorities in place quickly, but also help win confidence.”

Ms Green highlighted the potential opportunities in the low carbon economy highlighted in its Great North Revolution campaign.

“There are huge prizes for those countries that drive innovation in the low carbon markets. If government ensures the right framework to incentivise the transition to low carbon products and services,

“North East businesses in conjunction with our universities are well placed to maximise this opportunity.

“Similarly there will clearly need to be a focus on energy security which will help spur the development of the offshore wind market creating new opportunities for our subsea and manufacturing sectors.”

The BCC will meet the Chancellor at the Labour conference this week to present its recommendations ahead of the pre-Budget report.

Director General David Frost said: “With many businesses, and particularly small firms, still experiencing access to finance problems, there is clearly a need for the Government to continue with measures that boost money supply. Extending good initiatives like the enterprise finance guarantee scheme, and expanding the size and scope of the quantitative easing programme will help.”

The Federation of Small Businesses will tell delegates at Labour’s conference that small firms were “vital” to tackling youth unemployment.