Minister pledges ‘most pro-enterprise Budget for a generation’

BUSINESS minister Mark Prisk has promised next week will see the most “comprehensively pro-enterprise Budget in a generation”.

Mr Prisk was speaking at Pro Manchester’s Business and Professional Services conference held at Lancashire County Cricket Club today.

He told delegates that Wednesday’s Budget would focus on improving the competitiveness of UK firms, growing the exports of smaller firms and adjusting the planning regime.

He said the changes follow the Government’s growth review and its previously stated commitment to reduce business taxes, taking corporation tax down to 24% by 2014.

“We will focus on what’s holding back small and medium-sized businesses,” stressed Mr Prisk who cited a review into employment and discrimination tribunals which could lead to an increase in the qualifying period for standard unfair dismissal claims from one to two years.

Asked if it was possible to rebalance the economy, placing less emphasis on financial services, he replied: “Yes we can, yes we must. It’s essential we broaden our economic base so we’re much more resilient to future shocks.”

But he said this would not be at the expense of the professional services sector which is worth £170bn to the UK. “A stronger manufacturing industry will have greater demand for business and professional services.”

He added: “This Government values your sector as a crucial element of future economic growth, not just here in the North West but in the country as a whole.”

Other speakers during the morning session included Chris Cummings, chief executive of TheCityUK, a London-based organisation backed by 42 financial institutions which lobbies on behalf of the financial services sector. He said London was still the centre of global finance but faced competition from the Middle East and Asia.

He said the UK needed to stay competitive in three areas – taxes, regulation and skills – to retain international players and stressed that it was not just about London. “Some 1.2 million are employed in financial services across the country with two-thirds outside the M25.”

Andrew Bailey, executive director of the Bank of England, said it was “most unacceptable” that banks have depended on public money, while Angela Knight, chief executive of the British Bankers’ Association, said banks should be allowed to fail, but an “orderly” manner without causing massive damage to the financial system.

Carl Emmerson, deputy director of the Institute of Fiscal Studies, gave an analysis of Government economic policy, observing the UK was facing the “tightest outlook for public service spending since World War Two”.