CBI sets out plan for economic growth

Link to the article: Channel 4 News

By Channel 4 News

The CBI put forward a 12-point agenda today, setting out what any new administration should do to help put the economy on a path to sustainable growth.

The CBI said that whichever party wins the next general election, a new government should act quickly, and establish clear timetables for putting the 12 points into place within 100 days of taking power.

The business group particularly emphasised the need for a new government to commit to getting the public finances balanced by 2015 with a clear and credible plan for doing so.

This target year would require a new explicit commitment by the main political parties.

The CBI has launched the plan, titled New Government in Action: The Business Agenda, during the party conference season that precedes the next election, which must take place by June.

Its 12 priorities range from tackling youth unemployment because of its potential to scar a generation, to developing a stronger banking system.

John Cridland, CBI Deputy Director-General, said: "Any new government will have a lot to do in its early days, but the economy must be central to its plans, especially given the state of the public finances and the global downturn.

"Our proposals make clear what the priorities should be to help put our economy on the road to sustainable growth.

"The major political parties really need to focus on the public finances, even though this requires tough decisions. They should make it their ambition to set out a clear, credible plan that would return the budget to balance by 2015.

"We also emphasise the need for speed. A new administration should act quickly and decisively. This will not only put the right priorities in place quickly, but also help win confidence.

"Some of the priorities may surprise people. Not everybody expects youth unemployment to be a particular priority for business, but we know from previous recessions that it can scar generations and create lasting problems for young people as they make the transition to the world of work."

The 12 priorities spelt out in the CBI agenda are:

- Set out a sustainable path for the public finances

- Establish competitive business taxes

- Develop a strong banking system

- Prioritise energy security

- Work towards a low-carbon economy

- Develop the infrastructure for economic growth

- A global voice for UK business

- Skill students for the future

- Tackle youth unemployment (including a £2,500 subsidy for firms giving offering apprenticeships)

- Attract and cultivate enterprise and industry

- Reforming services to improve the economy

- Address public sector pensions