Home Business Opportunities

CBI Calls for Plan for Economic Growth

Sarah Bean - Monday 19.16.09, 08:04am

The CBI is calling on the Chancellor to ensure his Pre-Budget Report delivers a credible plan for balancing the public finances by 2015-16, two years earlier than planned, in order to boost investor confidence and get the UK on the path to recovery. But it is warning that the government will need to take an extra £120bn out of current spending plans to balance the books.

The UK’s leading business group says £50bn will need to be found between now and 2013 to allow for a slower economic recovery than the government is predicting, and a further £70bn will be needed after 2013 in order to balance the budget by 2015-16, rather than by 2017-18 as set out in the April Budget.

The CBI is setting out its strategy for getting the UK on the road to sustained growth ahead of the Pre-Budget Report. It involves bringing the public finances back into balance, a radical re-design of the way public services are delivered, and introducing a range of low-cost measures to position the economy for recovery. If the government adopts these proposals it could avoid large tax rises and crude spending cuts at a time when the economy is still fragile, while at the same time delivering high-quality public services.

John Cridland, CBI Deputy-Director General, said: “We are facing the biggest peacetime deficit in our history, and it is not simply going to disappear with the economic recovery. That is why we need a fully credible plan to convince financial markets and taxpayers alike that the public finances will be restored to health.

“Our calculations suggest that an extra £120bn will need to be taken out of current spending to achieve budget balance by 2015-16. Such savings cannot be achieved by tinkering at the edges, but will require radical public sector reform.

“We have identified how the required savings might be achieved by re-engineering the ways in which public services are delivered. By introducing new technology and competition, eliminating waste and inefficiency, and tackling unaffordable pensions and pay head on, we can avoid crude cuts to frontline staff and the vital services on which we all depend.

“Our proposals are not exhaustive, but they are evidence-based and illustrate the sorts of savings that could be achieved with strong political will. Raising taxes and cutting capital spending when the economy is still fragile would hurt families and businesses when they can least afford it. The only sensible option is to try to do more with less.”

To set your business on the right road to growth, view this popular factoring and invoice discounting video.

Del.icio.us Digg Technorati Blinklist Furl Reddit

Tags: Uncategorized

Related Posts

Tell A Friend Show

0 comments so far

  • There are no comments for this post yet. Why not be the first by filling out the form below.

Leave a Comment