Business urges David Cameron to 'be ambitious'

Business groups have been laying out their wishlists for the Conservative government, declaring that prime minister David Cameron has a strengthened mandate to dismantle the obstacles in the way of economic growth and calling for a vibrant debate on Britain's role in Europe.

In an open letter to the prime minister, John Longworth, director-general of the British Chambers of Commerce, urged Mr Cameron to "be ambitious" and "fight the Whitehall culture of incrementalism, risk-aversion and inertia that stops much-needed change".

The BCC wanted "growth, not austerity" to be the watchword of the government's fiscal programme, as well as tax incentives to help companies to invest, "irreversible commitments" to increase airport capacity and fundamental reforms of the UK's relationship with the EU, Mr Longworth added.

On the prospect of Britain leaving the EU, known as Brexit, a BCC spokesman added that members frequently expressed a desire for the UK to remain part of the EU, provided it was a "reformed EU".

Katja Hall, director-general of the CBI employers' organisation, said: "Business will take an active role in arguing the case for the UK to remain inside a reformed EU." She called for Britain to set the bar for EU reform at an "ambitious and achievable" level.

The CBI was also looking for speed, she said. The new government should "get into its stride quickly", have "a laser-like focus on delivery", get the deficit down and back the decisions of the Airports Commission "so we get diggers in the ground by 2020".

But the head of British Gas owner Centrica warned that leaving the EU would mean Britain would fail to enjoy the full benefits of a competitive energy market if it was "outside banging on the door".

Iain Conn, Centrica's chief executive, urged the government not to jettison its influence in Europe over policy making. "I am no politician and it is very much up to the government to decide on the political stance they want to take," he said. "I am just saying that Britain has had some of the most innovative ways to make energy markets more competitive. We are the envy of Europe in this regard, and the Conservative party should make sure Britain is fully represented in that."

"The UK needs to be fully inside, driving a competitive Europe rather than outside banging on the door, because nobody will listen at that point."

Nonetheless, he also welcomed the Conservative victory, saying that the government would have "a balanced and free market approach" to energy policy.

Small businesses were similarly upbeat about the election outcome. The result showed "increasing confidence out there", said Mike Cherry, national policy chairman at the Federation of Small Businesses.

More than half are confident the new government will back them with practical support, according to a FSB survey of more than 2,300 members conducted after the result.

The survey revealed red tape, tax and business rates - the familiar bugbears of small businesses - continued to head the list of issues FSB members want to see reformed, but skills and education were also high on the list.

Mr Cherry said the election had put an increased focus on the role of small businesses to the economy and he believed all parties had a better understanding of their contribution.

"It's quick things that can help our members, but let's not forget the overarching thing," he said. "Businesses need stability and certainty, and the new government needs to concentrate on reducing the deficit, alongside creating the right environment for businesses to invest to create jobs."

Additional reporting by Chris Adams

© The Financial Times Limited 2015. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation