Birmingham Chamber of Commerce Group has pleaded with the Chancellor of the Exchequer to take urgent action to boost British businesses and exporters.
The Chamber has written to the Chancellor, George Osborne MP, ahead of his Autumn Statement on 29 November, which will outline Government spending intentions prior to next year’s Budget.
In the letter to Mr Osborne, Chamber chief executive Jerry Blackett said that while the organisation was fully behind the Government’s attempts to reduce the UK’s multi-million pound deficit, he believed more could be done to help business.
Among steps proposed by the Chamber are:
- Immediate action to reduce red tape
- Tax cuts, including the 50p income tax rate
- A renewed commitment to the proposed HS2 rail line
The Chamber believes that if introduced, such a package of measures would be a desperately needed boost for the economy.
Mr Blackett said: “Some of these proposals will, necessarily, have up-front costs. However, we believe they are necessary to realise the full potential within the UK economy and release the jobs and growth currently locked away by a lack of investment, burdensome regulation and an uncompetitive tax system.”
Of the steps outlined above, the Chamber says that regulation and red tape costs UK businesses billions of pounds each year, and the Government should introduce a comprehensive deregulation plan which will cut through the labyrinth of employment and health and safety laws which are strangling commerce.
On tax, the Chamber is calling for the immediate abolition of the 50p rate, and also cuts in corporation tax, which it says acts as a barrier to investment.
The Chamber says that the Government should use the Autumn Statement to reaffirm its commitment to HS2, which Mr Blackett said would bring significant benefits, including encouraging investment away from the overheated south east and into other parts of the country.
As well as the key measures outlined above, the Chamber also wants the Government to stand by its proposals to reform planning laws, which it says will be crucial in creating growth and prosperity.
The Chamber is also urging Mr Osborne to boost employment, by providing new incentives for small to medium enterprises to take on apprentices.
Mr Blackett said: “There appears to be a misconception that there are no additional costs to employers who take apprentices on.
“Beyond paying wages, businesses must also provide on-the-job training and mentoring which takes up valuable time and resources which affects overall output.
“These associated costs to apprenticeships are prohibitively expensive for many SMEs who would otherwise want to invest in up-skilling their local labour market.”
The ‘wish list’ drawn up by the Chamber echoes comments by the organisation’s new president, Michael Ward, who said that it was imperative that the Government acted decisively to create the “best possible environment for jobs and growth.”
