Digby Jones, head of the Confederation of British Industry (CBI), has urged the government to boost UK entrepreneurship in 2004 by combating skills shortages and red tape.
Speaking in his New Year’s message, the CBI director-general said that ministers must use the improving economic situation to push forward a strong pro-small business agenda over the coming 12 months.
Although Jones said he was pleased that chancellor Gordon Brown chose not to increase business taxes in the recent pre-Budget report, he warned that unless skills levels were improved and red tape was cut UK firms would suffer a damaging fall in productivity.
“Business is tired of fighting threats to competitiveness. We have won many battles but since 1997 we have had a huge increase in regulation across the enterprise landscape, from labour market and health and safety rules to data protection.
“Now there are encouraging indications that ministers are ready to fight the corner of wealth creation and enhance competitive advantages,” he said.
Jones, who has gained a tough-talking reputation since a series of fierce attacks on the trade unions this summer, praised the government for not further adding to businesses’ tax burden despite the ‘black hole’ in public finances.
The CBI chief also said that ministers had done well to fight off the “endless stream” of “inappropriate and damaging” EU regulations.
“Of course we watch what politicians do more closely than what they say, but going into the New Year firms have reason to be hopeful.
“Now we must remind ministers that protecting competitiveness is not enough to create a truly entrepreneurial Britain.
“This government must turn up the heat to encourage an enterprise culture, building on UK opportunities in skills, innovation and international trade.
“Current government systems – and frankly many businesses and trade unions – are not adapting quickly enough to the higher demands of the modern world,” he said.
