Commenting on the speech by Shadow Chancellor Ed Balls MP, John Longworth BCC Director General said:
“Businesses will welcome Ed Balls’ emphasis on embedding fiscal responsibility in government decision making. The proposal to task the OBR with objectively analysing the costings of party manifestos is a good one. Though arguably a gimmick, the proposal to cut, then freeze ministers pay until the budget deficit is eliminated mirrors the kind of action that the best businesses would take when managing their own finances.
“We are pleased that the shadow chancellor has addressed in his speech some of the key asks from our Business Manifesto – establishing a fit for purpose and properly financed British Investment Bank; infrastructure development; expanding airport capacity; and building the number of new homes Britain needs.
“Businesses will also support his announcement to commission an independent review into British export support. Growing the UK’s export sector is essential to rebalancing the economy and putting it on a long-term sustainable footing. Ensuring we have the best possible support mechanisms for export businesses will be necessary if we are to compete with the world’s best. The voice of the business community must be heard loudly in this review.
“While we welcome Labour’s recognition that child care costs are now a major issue for both employees and employers, we believe the best way to address this is through a Childcare Contribution Scheme, as outlined in our Business Manifesto. Under our proposal all working parents with a child under school-age would be eligible, and would be given the funding upfront through the government’s existing childcare voucher scheme. The scheme would provide financial support from government of up to £10,000 and would be cost neutral for the tax payer.
“It is also heartening to hear that the shadow chancellor recognises the impact of taxation on business investment. However, businesses will be dismayed at the reintroduction of the 50p tax rate. Businesses have long said that the 50p top rate of income tax is a disincentive to enterprise, to wealth creation, and to investment here in the UK. There is little evidence it will raise additional tax.”
