Government must support businesses to kick-start the economy
The UK need not suffer a similar fate to the eurozone, despite the ongoing economic uncertainty, it has been claimed.
John Longworth, director general of the British Chambers of Commerce (BCC), said we are living in "momentous times" with slow but seismic shifts in the world economy.With changes afoot around the globe, the UK simply cannot afford to compromise on economic performance, he claimed.
"If we fall behind, the future could be very different for our children and grandchildren," Mr Longworth stated. "Britain does have the potential to recover and make its way in the world. We have the talent, the energy, and the enterprise. All we need is an environment that puts business first." Boosting growth in our businesses will boost the economy and let Britain lead on the international stage, he added.
Mr Longworth said that in the face of economic concerns, and the debt crisis in Europe, businesses across Britain are "busting a gut" to find new markets and grow their firms.
"That's why we all have to recognise that business is a force for good. It is at the centre of the economy, and it is only business that can create recovery and deliver all the good things we want, like education, healthcare and pensions," he stated.
What the government needs to do - as well as persevere with its austerity measures - is combat the threat of stagnation within the existing spending envelope, Mr Longworth claimed. He said that measures like the reversal of the "punishing" 5.6 per cent rise in business rates due in April 2012, and a reduction in employer National Insurance Contributions could make "a real difference" in helping our firms to grow. "But it's more than just about the role business plays in our economy," the BCC chief added. "Business is the foundation of local communities, creating the wealth that helps them thrive, providing hard working people with purpose and self-respect, and employment and training for those that want to learn."
Britain needs an enterprise culture where people are helped into self-employment, enabling them to one say provide jobs for other people, he said. Politicians have shown a level of resolve and determination to help business succeed this year, Mr Longworth added. "However, they have been nowhere near radical enough and have not been able to tackle the culture that deems business and wealth creation as negative." But the government can restore UK business confidence, he said, by facilitating the flow of credit to viable businesses, improving the UK planning system, and by overhauling the infrastructure and skills system.
"Business is not just good for Britain, but is essential. 2012 could provide the tipping point for our economy," Mr Longworth said. "Not just because the next year is the nadir of a crisis, but because it provides an opportunity for lasting change," he noted. "It could be a new start to an exciting future, the beginning of a renaissance in our fortunes based on enterprise, wealth creation and a new world view."