Westminster may already be in the grip of election fever but at the CBI we are doing all we can to avoid catching this chill. We will not be supporting one party over another, but rather we are hoping to persuade all parties to sign up to policies that help business. And we haven’t waited to be asked what these policies are; we have already published our own General Election Manifesto, which spells out exactly the direction we want the Government to take.
There is a general consensus that the views of business matter more than ever. I never get tired of reminding ministers that if they want better schools, hospitals and transport infrastructure, then they better ensure they help rather than hinder business growth. It is businesses up and down the country that pay nearly half of all UK tax, employ the majority of people who then pay tax, and create the wealth that allows government to spend the money to provide the high quality services we all want. And business must do its bit by including everyone in society in the great process of creating value for the UK – I call it socially inclusive wealth creation.
But it’s the health of the economy that will ultimately determine whether the Government can provide the services we all need. Our manifesto sets out a long-term vision for the type of economy that we would like to see by 2010 – and how that can be achieved. By 2010 we envisage an economy that can sustain three percent growth and a high level of skilled employment, has a healthy mix of manufacturing and service businesses, and is e-friendly.
To get there will not be easy and a lot of the hard work will have to be done by business, but it is essential that politicians play their part and, crucially, do not meddle where they are not needed. The last thing we need is a return to the ‘boom and bust’ of the past.
Economic stability have to be the key watchwords and this means leaving the Monetary Policy Committee to get on with the good work it has been doing. It also means ensuring that business taxation in this country attracts rather than scares away future investment, and that public expenditure is used efficiently and effectively. Although we recognise there are many valid calls on the public purse, we believe expenditure should not rise above 40 percent of GDP and that education and infrastructure, such as the transport system, should be put at the front of the queue when it comes to extra spending.
In the 21st century, education, and the skills gained from it, will be key. This means getting the basics right at school. Too many of our children are leaving school without even the basic skills in reading, writing and adding up, let alone proficiency in more advanced maths, English and IT. If we are going to compete globally this has to change. A lot has been done – and I applaud David Blunkett for his efforts – but even more has to be achieved.
If we want to continue to create good new jobs, politicians will also have to be sensitive to the amount of new rules and regulations they heap on business. Employment regulation, in particular, provokes keen debate. But it must not be forgotten that it is a strength that people here can choose how many hours they work, agree pay at a company level, and that employee involvement is primarily a matter of voluntary agreement. The debate over the balance to be struck between home and work will continue but in an age where business has never been more globally mobile, regulations designed to protect those in work can actually prevent those out of work from getting a job.
We want an economy that delivers a better standard of living for the British people, with first class public services and infrastructure. We will never achieve this goal without businesses winning new business and improving their competitiveness, thus creating and maintaining lasting, valued jobs. Politicians must do all they can to ensure they don’t get in the way of this business success.