Marches LEP Chairman calls for strategy for growth
The private sector must be supported with a strategy for growth by streamlining the business tax system and cutting back on red tape, according to the chairman of the Marches Local Enterprise Partnership.
Dr Geoffrey Davies OBE is calling for a range of measures to be considered by the Government to boost private sector growth.
Speaking ahead of the autumn budget statement, Dr Davies has outlined moves which could be made to help an economy 'teetering on the edge of a double dip recession.'
The Marches Local Enteprise Partnership is the private-sector led organisation working with the public sector to develop the conditions for economic vitality and sustainable job creation across Herefordshire, Shropshire and Telford & Wrekin.
Dr Davies said: “Within the Marches area, approximately 80 per cent of our businesses employ less than five people. These businesses probably provide the greatest opportunity for real growth.
“Central to the government's strategy is the hope that the private sector will be able to take up the slack left in the economy by a much diminished state presence - this is hopefully where the LEPs come in to play.
“To kickstart this growth, the Government needs to streamline the business tax system, simplify the regulatory regimes and provide UK Trade and Industry with additional funding to assist small enterprises to get into exporting.
“The Exports Credit Guarantee Department should offer small businesses extra financial protection and funding should be allocated to smaller employers for the training of staff they need.”
Dr Davies also called for a national insurance holiday for all small businesses with a turnover of less than £250,000 and for the Government to reduce the burden of tax for companies turning over less than £1 million.
“Banks should be given formal targets to respond to loan requests, and part-funded public sector equity funds should be more flexible in their targeted sectors. I would also like to see research and development tax credits replaced with better annual investment allowances,” he added.
The Marches LEP is engaging with businesses and business-led support organisations across the region, with many of these groups emphasising that cuts in Government spending are not enough to encourage economic recovery.
Dr Davies said: “I believe today we are teetering on the edge of a double of dip recession and a strategy for growth is desperately needed. While supporting measures to reduce the budget deficit, I would strongly argue the case for plans to promote private sector expansion. It is vital that we shift the focus of the national debate from the necessary spending cuts to one of growing the UK economy.”
“The Prime Minister David Cameron MP stated last week that if we could get 100,000 more small and medium enterprises exporting from the UK, this alone would wipe out our national trade deficit. It seems quite a challenge to me but worth having a go at. The Government however needs to listen to the entrepreneurs, encourage them and equip them with the tools to do the job.”
Chancellor George Osbourne will deliver the autumn budget statement at the House of Commons on November 29.
