Business groups’ PBR wishlist

NORTH West-based lobby group Private Sector Partners says the Pre-Budget Report is of vital importance, and needs to be “bold, dynamic and tough.”

Leader Len Collinson said: “In a climate where more than 130,000 businesses are at risk of insolvency and public borrowing is set to hit a record high of £175bn this report cannot and must not be an underwhelming fudge.”.

PSP says it supports the CBI’s demand for the Government to find £120bn worth of savings from the public sector by 2015-16.

Its proposals include:

:: Redesigning the way public services are delivered, including increasing competition, which could save £63bn by 2015-16.

:: Improving management of workforces in the public sector by adopting good practice from private firms, including better management of staff sickness and temporarily freezing the public sector pay bill. This could yield £27bn.

:: Allowing  the private sector to provide non-core activities, such as back-room functions. This could save £30bn.

On the public sector side, PSP says the VAT rise, scheduled for January 1 – should be delayed for at least one month.

Other measures it seeks includes:

:: Stopping the corporation tax hike.
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::Removing the planned National Insurance Contributions rise for 2011 and freezing the National Minimum Wage.

::Business rates – Small business rates relief should be made automatic to all eligible firms.

::Tackling Empty Property Rate Relief – In April last year, the Government abolished rate relief on empty properties. This means full business rates have to be paid on properties that have been empty for three months, as opposed to 50%This should be reversed.

Greater Manchester Chamber of Commerce – which represents around 5,000 firms of all sizes, believes the planned cessation of the trade credit insurance top-up scheme should be scrapped.

Deputy chief executive Chris Fletcher, pictured, said: This scheme is vital for guaranteeing companies are not left with bad debts and we want to see it reinstated and expanded.”

The Chamber also believes help should be given to enterprising small firms, and funding skills programmes

Mr Fletcher added:“We’d like to see small companies’ corporation tax held at the current rate for the forseeable future. We would also like an extension of first year capital allowances and an extension of the research and development tax credit to businesses involved with low carbon projects.”

Meanwhile the Institute of Chartered Accountants says the reforming the management of public spending is the “critical” issue.

Alan Hyams, chair of the ICAEW North West regional strategy board says: “All future policy decisions will be taken in the context of a huge hole in the public sector purse which will take decades to mend.

“While political views will differ on cuts that will need to be made, the Chancellor should focus on how the public sector is managed when tackling the country’s massive debt.”