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Why 2011 must be a year for growth

UK businesses have witnessed some of the toughest years in recent memory. But we can no longer afford to talk down our economic prospects. Our country needs stronger companies, more new start-ups and more employment. While all signs point to our economy recovering, we need to take action now for it to continue. This year we will feel the full impact of the public sector cuts, coupled with the VAT increase. Only growth in the private sector will ensure that the UK’s prospects recover.

In 2011, we will lobby government to ensure all policy decisions are pro-business, tackling the obstacles that prevent companies growing. We need a year where costly regulatory barriers are removed, where companies are given real incentives to expand, and where business people are encouraged to take risks – especially in new and growing markets.

The four key areas the BCC believes must be addressed to ensure 2011 is a Year for Growth for business are:

• Recruitment
We must make it easier for companies to recruit. There are currently 2.5m unemployed, including over one million young people. If we are to increase employment in this country, we have to roll back the tidal wave of employment regulation.

• Business Investment
If companies are to grow, then they will have to have access to finance on terms and conditions that are reasonable. A recovery cannot be held back by the failure of banks to lend.

• Supporting British Exporters
The UK must rediscover its trading spirit, and make 2011 a year for exports. Concrete Government action has to support new exporters, encourage seasoned firms to enter new markets, and facilitate critical trade finance flows which have stopped many companies from reaching their export potential.
• Planning
Planning decisions, whether for an individual company’s expansion plans or for wider local development, must be speeded up and simplified. Proposed changes in the Government’s approach to planning have to be challenged if true changes are seen as a charter for the anti-growth lobby.

With your help, we will collect evidence on the real obstacles to growth, develop constructive policy solutions, and seek out new ways for businesses to help other businesses. We must focus on future growth that can deliver real results in every city and town across the UK – with stronger companies, more new businesses and higher rates of employment.
David Frost - BCC’s Director General

Local Comment

Your Chamber supports the four priorities that BCC has identified for 2011 – because they are important to this region.

With regard to recruitment, we are likely to have a Jekyll and Hyde economy during the early part of the year. With the energy sector enjoying $90 barrel oil, improving prospects for the UKCS and continuing strong exports, they will be facing the unwelcome return of skills shortages and recruitment difficulties. The rest of the region’s economy will continue to be hit by the fall-out from three difficult trading years, with sectors like construction still struggling and recruitment in the doldrums.

Business investment will be patchy until enterprises are more confident about the future, and anything we can do to accelerate this is to be welcomed.

The region will continue to play a blinder on exports, with energy, food, fish, drink and expert services all continuing to grow their international presence.

The planning process still acts as a break on the full potential of economic development for the region and we must continue to work hard with the planning authorities and enterprise to ease the blockages.

One thing is abundantly clear to us – we are in this together.
Bob Collier, Chief Executive, AGCC