Wednesday, 6 October 2010

Getting Business Going

According to the FT small businesses are starting to find it easier to access credit, which has got to be good news for the economy.  Now the government needs to help create conditions that encourage investment - key to this is certainty and confidence.

I suggest a few policy areas that need some serious attention to help with this:

1) Transport - investment in the country's transport infrastructure is vital for business; lots of cancelled projects will cause jitters (possible - Transport Secretary Philip Hammond understands this)

2) Planning - this doesn't just affect the housing industry.  If you are a foreign investor and you need to build a factory or plant, the uncertainty and cost of the planning process in the UK is a disincentive (not likely)

3) Energy - a big sector in its own right and also part of the UK infrastructure.  We need a big 'Invest Here and Now' sign to be put up by the Department of Energy and Climate Change (not likely)

4) Tax - some moves have already been made on this; they should be shouted from the rooftops over and over again to ensure everyone gets the message that the UK is a good place to do business (likely)

5) Regulation - the cost to business of regulation is gigantic and while not adding to it is a good start, government could also look at simplifying or cutting back on some of what is there already. (not likely)

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