Video: Business Minister Mark Prisk at the Yorkshire Post Business Club

One policy would tip the balance in favour of the UK – the raising of capital allowances to encourage more spending on plant and machinery.

That’s according to Barry Dodd, chairman of GSM Group, who was speaking at last week’s Yorkshire Post Business Club event featuring Mark Prisk, the Minister for Business and Enterprise.

Mr Dodd urged the minister to consider the policy in the next Budget to help companies claim tax relief on vital investment.

In response, the minister said the Chancellor and Business Secretary are looking at the issue and “some of the tipping points” that would help manufacturers take advantage of the cheap pound in export markets.

The Conservative MP was the guest of honour at the second meeting of the Yorkshire Post Business Club, a forum for influential business leaders to debate the challenges facing businesses in the region.

He spent an hour in the company of entrepreneurs, executives and chairmen, listening to their concerns as they try to navigate turbulent economic headwinds.

Mr Prisk updated the audience on the Government’s efforts to rebalance the economy and faced questions on a wide range of topics.

Friday morning’s event began with Joanne Pollard, chief executive of CO2 Sense Yorkshire, outlining the Leeds city region’s argument to host the world’s first dedicated green investment bank.

She told the audience and the minister that “there is no better place” for the Government’s forthcoming green investment bank, which is being set up to help pay for environmentally friendly infrastructure.

Ms Pollard gave as evidence the “perfect” geographic location, value-for-money office space, financial and environmental talent pool, and abundance of low-carbon investment opportunities.

Mr Prisk said: “Leeds has a very strong case. It is one of several representations that we’ve had. But I understand that people will want to see that the work we are doing is not just about the City of London, so I’m very alert to that challenge. We have to make sure we get the right team that’s able to maximise the benefits for the country as a whole.”

He said the Government “well understood” the Yorkshire Post’s Fair Deal campaign, which is fighting to address the growing North-South divide.

Mr Prisk added: “It’s a good argument, strongly made. We are going to disagree on one or two bits. But I’m very keen to make sure that we as ministers engage with the business community here. We are listening. We are visiting. We are very much aware of the challenges that you face and also the opportunities.”

He defended the Government’s deficit reduction plan. He said: “When you have a large deficit, if you don’t deal with it, the markets will deal with you.

“I’m pleased it’s not Great Britain that’s in the spotlight in the financial markets at the moment. I’m not foolish enough to believe we are immune from the challenges that America and the eurozone are facing, but nevertheless by taking that difficult decision last year that we needed to get a grip of the UK’s finances we have managed to keep our interest rates lower for significantly longer and when you’re in business that’s a crucial element of your ability to trade.”

He said the Government is investing in skills and infrastructure, cutting taxes and red tape, promoting enterprise zones, empowering local enterprise partnerships and working with banks to improve access to finance in an effort to support sustainable growth.

Mr Prisk fielded questions from supermarket giant Morrisons, building services group NG Bailey, Aim-listed recycling firm Straight plc, Yorkshire Building Society, business advisers WGN and the social enterprise Shine.

He answered them without too much deviation from the Government line.

He was also asked about the scrapping of the 50p tax rate. Mr Prisk said: “We have to choose the right moment. It’s a temporary measure. We want to see when we can remove it.”

Mr Prisk added: “You need to have a tax system that rewards endeavour and you want to reward the entrepreneur.”

A forum for debate

The Yorkshire Post Business Club is a forum for influential business leaders to debate the most pressing issues of the day.

It is open to all companies shortlisted in the Yorkshire Post Excellence in Business Awards and special guests. The club is supported by main sponsors Aviva, DLA Piper, Goldman Sachs, Yorkshire Bank and PwC, which hosted Friday’s meeting. In his closing remarks, Roger Marsh, of PwC, questioned the level of Government investment and said ministers are “fixated” with deficit reduction rather than looking for “game-changing” strategic investments.

Watch event highlights at www.yorkshirepost.co.uk