Yahoo Finance Fix economy to make a success of Brexit, businesses tell Prime Minister
Theresa May is failing to take “basic and obvious” steps to restore the flagging economy’s fortunes, businesses have warned in a strongly-worded open letter.
A series of significant reforms are needed but the domestic agenda has seemingly been forgotten due to the Brexit negotiations, the British Chambers of Commerce said.
Adam Marshall, the BCC’s director general, wrote: “It is time, Prime Minister, for you to set out a compelling, pro-enterprise and pro-growth vision for the future, and a bold set of domestic policies to make it happen.”
GDP grew by just 0.1pc in the first three months of the year, while productivity fell by 0.5pc.
Improvements to infrastructure, better training and skills for workers, and a reformed tax system are all crucial to revitalising the economy, the business leader said.
Britain is lagging its continental neighbours and rivals when it comes to productivity and competitiveness, something the group said must be urgently addressed with “swift and radical action”.
“Even the best possible Brexit deal could fail to support our future competitiveness if we do not get the basics right here at home,” wrote Mr Marshall.
“Business as usual is not good enough at a time of significant uncertainty. A concerted drive to ‘fix the fundamentals’ would unlock business confidence and investment - and set the UK on a path to long-term growth, alongside a comprehensive settlement between the UK and EU.”
This should include simple steps such as “visible action to rebuild our rutted and potholed roads” as well as approving rail, airport and energy upgrades.
More houses are urgently needed too, while more modern infrastructure must be given a boost by eliminating mobile and broadband “not spots”.
The tax system should be simplified and its administrators encouraged to help firms instead of persecuting them, said the letter, which was written on behalf of the 75,000 members of Chambers of Commerce around the country.
“It is time to set a new mandate for HM Revenue and Customs and economic regulators to support, rather than pursue and punish, the small and medium-sized businesses that can drive future growth,” Mr Marshall wrote, adding that the authorities’ enforcement actions should be focused on the worst businesses instead.
“After decades of delay and incremental change, it is time to tackle the huge costs and complexities of the UK tax system, which actively discourage investment, risk-taking and the stronger export performance we all want to see.”
Meanwhile the Government needs to reassess some of its own policies to make sure they work properly.
The apprenticeship system is “faltering”, which is worrying at a time of “unprecedented labour and skills shortages all across the country”.
For the same reasons, clarity on the future of the immigration system should be prioritised so that companies know where they can find the staff they need.
“It is time for your Government to deliver a far more explicit blueprint to support economic growth in all regions and nations,” the letter said.
