• International tax competitiveness
• Financial stability
• Investment in infrastructure
• Education and training for the low-carbon economy
• Deregulation and labour market flexibility
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These are the five main issues, a quintet of must-do policy decisions, that have to be made if business is to grow under the new coalition Government and beyond.
Under the leadership of John Connolly, chairman of Deloitte, and Ian King Deputy Business Editor of The Times, a task force of business leaders was charged with presenting a range of key policy aims for business growth at The Times CEO Summit in London yesterday.
Top of the task force’s agenda was a reinforced focus on financial stability as a core aim of economic policy to ensure wider availability of credit. Financial stability should be a key policy proposal as it was the breakdown in financial stability that led directly to the recession, Mr Connolly said. “Financial stability will give corporates the predictability they need making investment decisions and give the providers of capital the confidence they need to lend.”
The group also called for a focus on infrastructure, with an emphasis on investment in energy supply and business-friendly planning. “Sub-optimal infrastructure damages performance,” Mr Connolly said, adding that without investment, the country would face an energy crunch — too much demand and not enough supply.
An additional focus, he continued, must be on vocational training, secondary education and skills with a specific emphasis toward jobs in the low-carbon economy. “We need a more educated workforce, one which will improve productivity,” Mr Connolly said. “There is also the opportunity for the UK to take a leading position in technology in the low-carbon economy.”
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On business and taxes, the task force was unequivocal. “We need to be top of the international tax competitive league table, with an emphasis on certainty, an emphasis on research and development and — very, very important — an emphasis on entrepreneurial business,” Mr Connolly said.
The task force had struggled to agree on wholesale tax cuts as a solution to business growth but had agreed that international competitiveness would attract, stimulate and retain investment.
Lastly, the task force urged the Government to concentrate on deregulation and labour market flexibility to defend British competitiveness.
In a poll of around a hundred chief executives at the summit, international tax competitiveness was regarded as the most important single policy issue for business growth. This was also regarded as the third most important policy of all the priorities considered by the summit — which also addressed the deficit, political reform, public services, security, education and climate change. The need to stick to the target for fiscal deficit reduction was voted the most important.