WIREDGOV

Before the General Election in March, the UK’s leading business voice had set out its priorities for the first 100 days of a new Government in its report Best Foot Forward. 

Commenting on the Conservative Government's progress since taking power in May, John Cridland, CBI Director-General, said:

“We are now nearly two-thirds of the way through the critical first 100 days of a new Government and the business assessment so far is broadly positive.

“Although the uncertainty of the election period is now behind us, the Government’s first two months in office have underlined some of the significant opportunities and challenges facing business in the parliament ahead.

"Action to balance the books, reduce corporation tax and to press ahead with some important infrastructure schemes are among the stand outs for business.

"Businesses are also supportive of the Prime Minister's attempts to secure ambitious reform in the European Union ahead of the referendum. Areas where firms are raising concerns with us include the direction of travel on immigration policy and some aspects of labour market policy. "

The CBI identified a number of red button issues for business, including fiscal policy, infrastructure, immigration, labour market policy, devolution and EU reform.

On fiscal policy, John Cridland said:

“Business support for the Chancellor’s deficit reduction plans has been widespread since the start of the financial crisis and that continues today. Tough decisions will need to be made in the Spending Review.

“Business stands ready to work with the Government to fundamentally transform the way public services operate to maintain the quality that people expect and still meet its deficit reduction goals. We need new approaches to tackle long-standing public policy challenges, such as how we integrate our health and social care systems.

“Business looks forward to the long-term tax road map following the further cut in corporation tax. That really was a welcome surprise and will give the UK the lowest rate in the G20. We now need action on business rates.”

On infrastructure, he added:

“One of business’ bug bears has been pinch points and potholes on our roads and over the last Parliament I’m delighted that some of the schemes we’ve championed are seeing movement.

"We also welcome the Prime Minister’s pledge to make a decision on aviation capacity by 2016 following Howard Davies’ recommendation and we want diggers in the ground by 2020.”

On immigration, Mr Cridland said:

“The Government’s current direction on non-EU immigration is causing some headaches for businesses. Growth in the UK economy is stronger than in other countries, businesses are facing skill shortages and international students want to learn at the best universities in the world. These are factors which draw people to the UK – people who are more likely to be employed, earning and paying taxes. We want the Government to scrap the net migration target and to increase the skilled migration cap to protect the UK’s reputation as being open for business.”

On recent announcements on the labour market, he said:

“The Chancellor is taking a gamble that the labour market can absorb year-on-year increases of an average of 6%. The CBI supports a higher skilled, higher wage economy, but legislating for a living wage does not reflect businesses’ ability to pay, especially smaller firms.”

“While a new apprenticeship levy may guarantee funding for more apprenticeships, it’s unlikely to equate to higher quality or deliver the skills that industry urgently needs.”

Commenting on the prospects for further devolution, Katja Hall, Deputy Director-General added that this was an issue that business supports in principle but was mindful of potential challenges:

“We have seen the calls for further devolution to our devolved nations and city regions continue this side of the election. And it’s understandable that many want certain decisions taken closer to home, and in many cases this makes sense.

“Our challenge back to government has always been to articulate how this will help boost growth. Where democratic will and economic impact meet – that’s the devolution sweet spot.  Further devolution will only be sustainable if it ticks both boxes.

On the EU, Ms Hall added:

“We have a clear position on the EU: Most CBI members want to be in a reformed EU, and we have never said we are in at all costs. We simply don’t accept the argument that if you believe that EU membership brings benefits to the UK, then you can’t push for reform to make it work better at the same time. The two are not mutually exclusive.

“We support the Prime Minister’s ambitious efforts. Reform for all of Europe is in the UK’s interest and the government must work with other countries to secure a more competitive EU. In particular, building on the work started in Brussels on better regulation, getting more trade deals signed, such as the Trans-Atlantic Trade and Investment Partnership and furthering the internal market in services and digital.

“The principle of subsidiarity should be prioritised at the negotiation table, giving national parliaments a greater say on issues better dealt with at country level. Interpreting EU employment rules like prescriptive regulation around working hours needs addressing, while the interests of all non-Eurozone members must also remain protected.”