‘Could do better’ – CBI boss’s verdict on Coalition
THE Coalition has failed to match its spending cuts with policies that support growth, according to the outgoing director-general of the CBI.
In his final speech in the role, Sir Richard Lambert described the Government as “by no means firing on all cylinders” when it came to producing initiatives that lead to investment and job creation.
He called for the Government to embrace “bold initiatives” including a green investment bank to support the rebuilding of power infrastructure, a focus on training and skills, renewing road and rail links, tax policies that encourage investment and the establishment of a healthy banking sector.
Suggesting ministers have failed to offer a vision for a successful economy, he said: “The Growth White Paper that was expected last autumn never materialised, and the impression was given that there simply weren’t enough good ideas around to justify such a publication.
“Rather than a big picture of the kind of economic eco-system that the Government wants to champion, we are left with a few rather vague ideas about the scope for supporting a number of predictable sectors, and the promise that more ideas will be forthcoming at the time of the spring budget.”
Sir Richard pointed to the Government’s immigration cap, planning changes and carbon reduction plans among others as evidence of the Coalition choosing putting politics ahead of growth.
He branded the launch of Local Enterprise Partnerships – the sub-regional economic bodies which have replaced the regional development agencies as ‘poorly-handled’.
He called on the Government to spend less time listening to multinational companies and focus on supporting SMEs. Sir Richard also urged Ministers not to “pick winners” in terms of sectors or export destinations and understand that “it is just as possible – and important – to be an innovator in the brick making industry as it is in the biosciences. And innovation is not confined to the South East corner of England.”
Sir Richard also said it was time to take a “hard look” at the Department of Business to ensure it is “less of a talking shop, more of an action-oriented growth champion”.
