Trade bodies call for cuts in red tape
TWO leading trade bodies have called upon the government to implement its “plan for growth” by cutting red tape and simplifying tax rules.
The Institute of Chartered Accountants for England & Wales (ICAEW) and the Engineering Employers’ Federation have both called for action after reporting disappointing economic data.
Speaking at the launch of the ICAEW/Grant Thornton Business Confidence Monitor (BCM), Michael Izza said that it showed that confidence among the region’s businesses was plummeting.
“Six months ago, the government described its ‘Plan for Growth’ as ‘an urgent call for action’. The plan is sound, but the urgency is lacking,” he said. “We now need to get on with reforming the tax system to make it simpler and more competitive.”
The BCM fell to 6.4 during the last quarter, which is a considerable drop from its post-recession high of 24.3 in the first quarter of 2010.
The Monitor found that exports from North West firms increased by 4.1% on the previous year, and that there had been year-on-year improvements both in companies’ turnover (up 2.7%) and gross profits (up 3.1%).
Wage growth remains weak, though, with basic salary growth increasing by 1.1%. Employee numbers are largely unchanged.
Meanwhile, the Engineering Employers’ Federation has said that changes need to be made after publishing its own report on reforming regulation.
It said that government has shown “positive ambitions” to date, including the implementation of a “One-In One-Out” approach to business regulation and greater scrutiny of new regulation by the Regulatory Policy Committee.
However, the organisation said it needs to see signs of a “genuine change” in Whitehall, including greater efforts being made to stem the tide of new rules coming from Europe.
EEF North West region director, David Ost, said: “Government has set out the right ambitions to reduce the burden of regulation and its approach has the potential to deliver it. But industry is now looking to see the new approach deliver real change.
He said the Government “needs to ensure that any progress at home is not undone by the need to implement expensive and badly-designed directives from Europe”.
“With employers about to face significant costs from implementing the Agency Workers Directive, the government must show strong leadership in Europe and change a culture which is still reaching for the regulatory trigger as a first rather than the last option.”
