Chancellor “must focus on growth”

THE Chancellor must show “a relentless focus on growth to help get the UK working again” in his next Budget, a leading business group urged today.

The CBI has outlined its priorities for the Government’s Growth Review, which the Chancellor is set to reveal alongside his Budget on March 23.

In a letter to George Osborne, the CBI calls on the Government to focus on boosting export performance, unleashing investment spending in the UK, and removing barriers for high-growth firms.

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The Budget must also address areas of taxation, the CBI said, which are discouraging entrepreneurship and undermining UK competitiveness.

John Cridland, CBI Director-General, said: “This Budget must demonstrate a relentless focus on growth to help get the UK working again. We need an all-action Budget which boosts exports, investment and jobs.

“The Budget should create the framework for a Mittelstand of mid-cap businesses by ensuring they can access the capital they need to expand at home and abroad.”

The CBI outlined a number of initiatives which could boost exports and investment, including strengthening UK Trade & Investment (UKTI) to provide more targeted support for exporters.

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The group also wants regulation to change, including restoring the two-year unfair dismissal qualifying period to give companies more time to assess the potential of a new employee.

Although oil prices and related world events are outside the UK’s control, the CBI also warns that an above-inflation rise in fuel duties would make a difficult situation worse.

Ian McCafferty, CBI chief economic adviser, said: “The Government has been right to stay the course on its fiscal consolidation plans to bring the current budget deficit back to balance by 2015.

“As spending cuts put household spending under ever greater pressure, the Budget must create the right conditions for businesses to invest and grow.

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“Given that much more growth will have to come from exports and corporate investment, the role of UKTI in helping firms exploit overseas opportunities will be crucial.

“In addition, public service reform needs to be more than simply taking the easy option of reducing headcount and cutting frontline services. Less money should not equate to a poorer-quality service.”

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