Ignore the election and focus on the economy, Chancellor told

BUSINESS leaders in Coventry and Warwickshire have urged Chancellor George Osborne to put the economy before the election in his Autumn Statement next week.

The Chancellor will take to the despatch box next Wednesday (December 3) to deliver his final Autumn Statement before the General Election next May.

TheBusinessDesk.com’s coverage of the Autumn Statement is brought to you in conjunction with EY. 

And the Coventry and Warwickshire Chamber of Commerce is warning against any pre-election ‘vote winners’ that could jeopardise the economic recovery.

Chief executive Louise Bennett said: “The Autumn Statement must be one that aims to cement the economic recovery not one that looks to start grabbing votes for the General Election.

“That means business must be at the heart of it and must include measures that support job creation and growth. David Cameron said recently that there were red lights on the world economy’s dashboard so how will this Autumn Statement look to deal with that?

“That means creating the best possible conditions for companies to invest, do business and grow in what remains a tough climate. It also means looking to address the issue around our young people and equipping them with the skills they need to fill the roles our economy requires.

“Another factor that will help growth is bringing our infrastructure into the 21st century.

“Across Coventry and Warwickshire, we are seeing a great deal of work being undertaken on our roads but it’s vital that we see investment nationally in roads, rail and air in order for us to be able to compete on the global stage and that more of that investment comes to this area, especially North Warwickshire.

“On top of the improvements that will bring, it will also create jobs in the construction and engineering sector.”

Meanwhile, business organisation the CBI has unveiled its Autumn Statement wish list.

It suggests that investment and measures to boost innovation and enterprise should be top of the Chancellor’s agenda.

The CBI is calling on the Government to focus on infrastructure investment, encouraging innovation and removing barriers to enterprise, against what it says is a backdrop of solid UK growth but increasing global risks.

The latest CBI/URS Infrastructure Survey shows that businesses expect transport and energy infrastructure to worsen over the next five years while the business group wants to see the Government reform business rates; supercharge the research and development (R&D) tax credit; ensure further devolution passes the business growth test while maintaining the integrity of the UK’s internal market; and freeze long-haul air passenger duty.

Businesses recognise that the public finances are under significant pressure, says the CBI, and with the government still borrowing around £100 bn a year, a new fiscal framework should enshrine a continued commitment to deficit reduction.

John Cridland, CBI director-general, said: “The UK recovery is on solid ground but it is in increasingly stark contrast to what’s happening elsewhere in the world.

With Eurozone economies flat-lining, continuing political tension between Russia and Ukraine, and in the Middle East, and slowing emerging markets, we must be alert to the possible knock-on effects here.

“Businesses recognise the public purse is under pressure, which is why they want the Government to continue tackling the deficit, alongside targeted, affordable measures to keep UK growth motoring now, in the next Parliament, and beyond.”

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