Business organisations want radical action in Budget

Leading business organisations have called for "radical” action to be taken to stimulate the UK’s ailing economy, and help Britain swerve a much feared triple-dip recession.


The Confederation of British Industry (CBI), the British Chambers of Commerce (BCC) and the manufacturer’s association EEF have come together to propose a raft of measures to tackle Britain’s deficit whilst creating thousands of new jobs.


The CBI have argued that the Chancellor could redirect £2.2bn from current spending to "high-growth areas", such as the housing market, with a cash-injection of around £1.25bn to build 50,000 affordable homes helping to create 75,000 jobs.


The UK's leading independent employers' organisation have outlined that an investment of £950m should be ploughed into business tax measures, such as a 2% cap on business rate increases, in order to act as a catalyst for business activity.


The CBI’s Director General John Cridland argued that the government’s Budget announcement on March 20th was a prime opportunity for the coalition to "kick-start confidence" in the business, and wider community.


"Our measures will provide another boost for the housing market and will benefit first-time buyers, those trapped in negative equity and those looking to refurbish their homes," he said.


"With its relatively short lead-in times, house building offers the most bang-for-buck in growth terms - unleashing pent-up demand while creating jobs and growth."


The BCC also called for the government to reallocate spending from "unproductive areas" to areas that were more likely to stimulate rapid growth in the UK’s economy.


Like the CBI, the organisation also called for 100,000 additional new houses to be built by the government or housing associations over the next two years.


BCC Director General John Longworth said:


"Our own research shows that firms across Britain believe they can drive growth this year but they can't do it alone," he said.


"Bold action must be taken now to boost confidence so that businesses can create wealth and prosperity. That means both delivering existing promises and taking radical action today, not tomorrow."


If your business is struggling in the current financial climate, you may want to seek professional advice on financial restructuring options.


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

View all Business Insights