A Business Plan for Britain: Expectations of the next UK government
The Manifesto reflects the expectations of business communities across the UK, and the measures they require from any incoming government in 2015 in order to help Britain fulfil its true economic potential.
The business group, which represents thousands of businesses of all sizes across the UK, has identified seven core themes that must be at the heart of any plan for government, to ensure Britain becomes & lsquo;a more confident, more enterprising, and more skilled trading nation’. The BCC manifesto issues a clear call to all political parties to make these priorities for growth a reality.
RETAINING THE BEST UK TALENT AND DEVELOPING THE NEXT GENERATION
Nurturing the business leaders of tomorrow, preparing young people for work and investing in the skills and prospects of those already in work are essential to the UK’s competitiveness.
Introducing a Childcare Contribution Scheme that helps talented people stay in work– increased financial support for working parents to access childcare, thereby allowing more businesses to retain and develop staff while they start families.
· Soaring childcare costs mean that many parents are forced to drop out of the workforce to look after their children. If this is not addressed by the next government, together with measures to boost the number of childcare places available, the UK could lose out on future talent that will help to drive economic growth.
· All working parents with a child under school-age would be eligible, and would be given the funding upfront by government through a voucher scheme.
· The primary earner would start paying back the government contribution at six per cent of their gross income above the income tax personal allowance (£10,000 for 2014-15). An interest rate of three per cent above inflation would be applied.
GROWING BRITAIN’S GLOBAL TRADE POTENTIAL
Removing barriers to trade, building international networks and investing in our export skills base will support UK businesses to take on the world
Calling for a more & lsquo;pro-business’ Home Office that actively supports British firms by reducing bureaucracy, costs and delays for foreign business visitors, skilled individuals seeking to work in the UK, and British nationals seeking to renew passports from overseas – therebyattracting the best talent and investment from overseas andhelping British firms link with customers, investors and business partners.
· Unless the next government adopts migration and visa policies that support business and economic needs, the UK will lose out on business deals and the ability to attract the best talent and investment from overseas.
· Introduce a & lsquo;fast-track’ passport issuance scheme for British exporters and global traders overseas – enforcing a maximum turnaround of four weeks so Britain’s exporters can respond to business opportunities quickly.
· The BCC is also calling for a more pragmatic approach to visa issuance for foreign students and skilled workers – to ensure the visa system addresses economic need, rather than shut out individuals who can make a real contribution to growth.
STRENGTHEN BRITAIN’S INFRASTRUCTURE TO REACH A WORLD CLASS STANDARD
A world-class economy needs world-class infrastructure, and businesses need certainty that crucial improvements will actually be delivered.
An irreversible decision to build new aviation capacity following the publication of the Airports Commission’s report – so UK businesses have the international connectivity for passengers and goods to compete on the world stage.
Businesses across the UK need more aviation capacity and would like to see this delivered by expanding existing airports, rather than building entirely new ones. This is why we supported the Airports Commission’s recent decision to reject plans for a new airport in the Thames Estuary.
But additional capacity should not be limited to just one airport, and any viable expansion option should be allowed to proceed.
However, if the Commission only gives the green light to one new runway at Heathrow or Gatwick, it is absolutely crucial that politicians then ensure it is delivered.
An aviation strategy should involve the strengthening of regional airports as well as airports in the South East. This will boost economic growth in the regions, help to relieve capacity shortages during extreme weather and provide business and holiday travel for people locally.
DRIVE DOWN BUSINESS COSTS AND TAXES
Simplifying the UK tax system and reducing the taxes firms pay even before they generate a profit, will boost businesses competitiveness, investment and jobs.
Freezing business rates for all companies until 2017’s planned full revaluation of premises – plus a thorough review and reform of the broken business rates system by 2022 – UK firms face the highest business property tax bills in Europe, and the current system is at odds with the government’s ambition to have one of the most competitive tax systems in the G20.
· Abandon up-rating of business rates until the 2017 revaluation, with HM Treasury working with all three devolved governments to ensure the freeze is UK-wide.
· Commit to a thorough review of the broken business rates system to be completed in 2017 and implemented by 2022 that delivers an internationally competitive local tax system.
SUPPORT LONG-TERM BUSINESS INVESTMENT
Promoting access to finance and backing investors in dynamic businesses will support the rebalancing the UK economy so badly needs.
Implementing the findings of the planned Competition and Markets Authority (CMA) market investigation into SME banking, and review restrictions for new SME finance providers – to promote competition in the sector and restore trust, transparency and relationships between lenders and businesses.
· The planned CMA investigation must be wide-ranging and should be used as an opportunity to tackle the many concerns businesses have raised around banking and growth finance. Customer service, switching, lending and other business banking services must be examined as part of the review.
· There must be a commitment to reviewing SME market restrictions for potential finance providers, such as easing capital limits for building societies and helping to reduce barriers for new crowd funders and providers of asset finance.
DELIVER A NEW SETTLEMENT FOR BRITAIN IN EUROPE
Making the economic opportunities of the European trading bloc work for business, and ensuring clear safeguards for Britain against unwanted further integration will be critical for our future success.
Securing safeguards for the UK and other non-eurozone countries in future EU decision-making–so that as eurozone countries look to integrate further, a new architecture is put in place to ensure non-eurozone states are not disadvantaged in the future governance of the Single Market.
· The UK should work with other non-eurozone countries in seeking assurances that decisions relating to the single market will continue to be made by all member-states.
· The UK should lead efforts to complete the Single Market, in particular the single market in services. Compared to trade in goods, the internal market for services has barely got off the ground, much to the UK's economic disadvantage.
Existing EU legislation should be fit for purpose. New proposals must avoid unnecessary regulatory burdens for UK businesses and must add value to ensure the UK remains competitive.
PLACE BUSINESS AT THE HEART OF LOCAL GROWTH
Giving businesses a greater say in local decision-making will boost the economies of our cities, towns, and counties.
Guaranteeing a Business Ratepayers’ Vote on local economic strategy and how it is funded – including a vote on any proposed changes to local business taxation – to ensure that plans for an area’s future have the support and input of the whole of the business community.
Giving businesses a greater say in decision making at a local level would make local authorities more sensitive to business issues and costs, and ensure local economic plans are genuinely designed to boost business growth.
Commenting, John Longworth BCC Director General said:
“The decisions taken during the term of the next Parliament will have a profound impact on the UK’s ability to grow. We need a business plan for Britain, with governments across the UK focusing their attention on creating the best possible environment for growth and enterprise.
“Over the next five years, we can become a more confident, more enterprising, more skilled trading nation that is capable of standing on its own two feet - or retreat into slow but very real decline. A Britain built for growth is a Britain where government decisions are relentlessly pro-growth business policies are fit for the long term local business communities are empowered and the machinery of national and local government works with and for business.
“Our Business Plan for Britain is practical, pragmatic and achievable. We call on the next UK government, the devolved administrations, and local authorities to work together and with us in a true partnership to make our plan a reality, and lead Britain into a more prosperous future.”
ASPIRATIONS FOR 2015-2020
In its Business Plan for Britain, the BCC suggests that by maintaining a relentless focus on policies that deliver prosperity, the next government should set bold and measurable aspirations for 2020:
The fastest GDP growth rate in the G7 over the life of the next Parliament
The highest level of business investment as a % of GDP in the G7 by 2020
The lowest rate of youth unemployment in Europe by 2020
Double the value of exports to £1 trillion by 2020
Elimination of the UK’s budget deficit and a return to surplus by 2018/19
Maintain the lowest rate of corporation tax in the G20 and achieve the lowest
business input taxes and charges by 2020
Rise from 28th to top fifteen in World Economic Forum infrastructure rankings by 2020
Support private-sector construction rates of at least 200,000 new homes per annum over the life of the next Parliament
A workforce with literacy, numeracy and problem-solving skills that rank in the top ten in the OECD Adult Skills Survey by 2020
Ranked first amongst European countries for overall competitiveness by the World Economic Forum by 2020 (currently tenth overall and sixth amongst European countries)