90-day business 'challenge' to incoming government

Business group the British Chambers of Commerce (BCC) has thrown down a 90-day gauntlet to the winner of today's General Election.

According to the BCC, any incoming government must be prepared to show its commitment to "put business at the heart of thinking from day one", promoting sustainability and growth in the economy.

It has produced a three-month plan - designed to give business free reign to drive recovery - based on four main aims: restoring public finances to health, boosting employment, improving infrastructure, and growing trade and exports.

Key proposals include freezing public sector wages and reforming public pensions, cancelling the planned National Insurance Contributions (NIC) rise, pledging not to introduce "burdensome" new employment laws before 2014, and undertaking a "systematic review of existing regulations affecting employers".

And the group is warning that failure to put these measures into effect would lead to a sluggish recovery at best - or possibly no recovery at all.

The challenge comes just a week after BCC warned about the dangers of a hung parliament - claiming that the majority of businesses were wary of the potential lack of strong decision-making which would result. It has now followed up on this by saying that, in the event of no party taking 50% of the seats, "the main parties must put political horse-trading to one side and show leadership to deal with the serious threats still facing the UK economy".

Director-general David Frost said that the "phoney war between the parties must end", adding that they must be "crystal clear" about where their spending cuts will take place.

"Putting business growth at the very core of a new administration's thinking is fundamental to returning our economy to health quickly, and for the long-term," he said.

"Sorting out the dismal state of our public finances must be at the very top of the agenda.

"During the first 90 days after an election, an incoming Government must make concrete proposals to reduce red tape and tax burdens on business; review how to move the economy away from an over-reliance on consumption and the public sector; and commit to improving Britain’s energy, transport and digital infrastructure."

Meanwhile, the Chartered Institute of Personnel and Development has predicted a private sector "hiring surge" in its latest quarterly report.

The Labour Market Outlook survey, produced with professional services provider KPMG, found that the UK's emergence from recession was bringing better employment prospects, pointing to private sector recruitment offsetting job losses in the public sector. Adding that the results suggested that unemployment - which the most recent figures show has reached 2.5 million, the highest since 1994 - "may be close to a peak", it nevertheless warned that a "relapse" may take place if economic recovery stalls.

In addition, the report warned of a further divide, highlighting the disparity between prospects in London and southern England - the "main engines of growth" - and job creation in other regions of the UK.

Alan Downey, head of public sector at KPMG, said: "The survey shows that public sector employers have woken up to the scale of the financial challenge that is coming their way."

IMAGE Johnny Green/PA Wire

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