LONDON – The Confederation of British Industry has called on
the government to safeguard economic growth in its forthcoming
Comprehensive Spending Review, saying that the coalition should
prioritise areas that the CBI thinks foster the economy’s ability to
grow.
The CBI said it agreed with the coalition that government spending
must be limited to avoid major tax rises that could “damage our economy
and undermine competitiveness.”
But it also said it feels the government should protect investment
in areas that “do most to foster economic growth” while making savings
by “re-engineering public service delivery, reforming public sector
pensions and reducing spending in other areas”.
The CBI also called for public sector capital investment to be
returned to 2.25% of GDP as soon as possible.
It made the call as it published its submission to the Treasury
ahead of the Oct 20 spending review next month. The government
previously announced in the Budget that it will make stg32 billion of
annual spending reductions by 2014/2015.
John Cridland, CBI Deputy Director-General, said that he thought
the need for economic growth, not “the noise of the loudest voice”,
should determine where the spending axe falls.
“The Government must improve the efficiency of public services and
focus the limited public money available on areas that do most to
galvanise growth,” he said.
–London bureau: 44 20 7862 7492; email: wwilkes@marketnews.com
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