CBI calls for spur to UK economy
Employers’ body, the Confederation of British Business (CBI), will call on the Government today to boost the entrepreneurial side of the British economy.
The CBI will say that more must be done to spur on the economy next year.
Digby Jones, CBI director-general, will argue that despite robust employment growth in 2004, more must be done to stimulate the private sector labour market. The economy is too dependent on Government spending, he will argue in his New Year’s message.
“We can no longer benchmark Britain against other major industrialised economies,” he will say.
The sentiment was shared by David Frost, director general of British Chambers of Commerce (BCC), who yesterday argued that the Government should be more frugal in terms of public spending.
“Government should learn to operate on their current finances rather than continually expanding and then requiring us to pay for it.
“The most important thing that the Government could do for business in the new year is to put a hold a new business taxes and simplify the current tax and regulatory system.”
Mr Jones will call for a more competitive, more entrepreneurial, more deregulated economy.
He will forecast that overall employment will rise by nearly 200,000 in 2004, with about 120,000 of those jobs likely to be in the public sector. Manufacturing will axe a further 48,000 jobs, he will contend.
“While we can look forward to record high levels of employment, approaching two-thirds of the jobs are likely to be funded by the taxpayer. That simply cannot go on for ever.”
An economy over-burdened by red tape and a stifling entrepreneurial climate would force firms to look abroad, he will warn.
“We can no longer simply benchmark Britain against other major industrialised countries. We will increasingly find countries such as India and China competing for investment, not just because they offer cheaper labour but because they also have highly skilled people.”
Mr Jones will call on the Government to do more in terms of fostering a more skilful and qualified workforce: “Around 80% of the jobs in this country require five GCSEs or equivalent but half the young people finish compulsory education without achieving this. There will be little work for unskilled people in a few years’ time.
“Future generations will be grateful if we build an enterprise culture on today’s economic success.”
