Business leaders put pressure on Govt
Business leaders have urged George Osborne to do more to boost growth in the UK, claiming the Government is currently doing “too little, too slowly”.
A poll of 1,200 people by the Institute of Directors found the majority of businessmen felt the Government had been “ineffective” at reducing tax, reforming regulations on businesses, and changing employment laws.
The organisation’s chief economist this morning insisted businesses did not want a change to the Government’s plans for deficit reduction, but criticised the “ineffective” supply-side policies.
Graeme Leach told 5Live: “That's really where we want to see change. We don't want to see any slowdown in deficit reduction but we do want to see much more aggressive supply-side action.”
Labour has seized on the report to push for an economic stimulus package. Shadow Business Secretary Chuka Umunna described the criticism from the IoD as “quite extraordinary”.
He told Sky News this morning: “What we saw was in the wake of the Government’s comprehensive spending review back in 2010, confidence nosedived, but then demand and orders dried up, and that’s what so many businesses are complaining about. And so we’re saying we need an immediate stimulus package to get demand back into the economy, to get those orders back, and then we can reduce the numbers of people out of work.”
The Government is reportedly preparing to announce a series of measures aimed at improving the UK’s growth, with plans to overhaul planning laws, increase infrastructure spending, and reform the Highways Agency all mooted.
It follows disappointing borrowing figures for the Government yesterday, which showed the UK had borrowed £600m in July.