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Coalition in review: A good year for business?
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The Confederation of British Industry (CBI) has praised the government for its attempts to support the business community during its first year in power.
In a new report entitled 'The Coalition Government One Year On: the Business Perspective', the lobby group gives the Con-Lib partnership credit for "swift and decisive action" on the national budget deficit.
The CBI also praised David Cameron's government for its reform of business taxes, for prioritising trade and investment, and its approach to enterprise and industrial policy.
However, the organisation also suggested a number of areas where more progress could have been made.
The CBI said government policy has been less effective in reforming the energy market, moving to a low-carbon economy, increasing labour market flexibility, and reforming public services.
Sir Roger Carr, president of the confederation, said that if the pace of recovery is to be accelerated, the government must work harder in laying the right foundations for businesses to grow and business must respond accordingly.
"We don't expect the government to provide all the solutions but it can and must set the right framework," he stated.
"It can do this by removing roadblocks like overbearing regulations, providing incentives through the tax system, encouraging investment in infrastructure, facilitating when necessary, and reforming our public services."
If the government gets this right then business can be energised to capitalise on opportunities that only the state can provide, Sir Roger stated.
CBI director-general John Cridland agreed that there is "much the government should be given credit for in a busy and productive first year".
He said that acting decisively and swiftly on the deficit has "certainly laid a firm foundation for future growth".
Where employment is concerned, Mr Cridland claimed that the 30-year old legal framework of industrial relations needs modernising.
In addition, he said that the intention to reform the employment tribunal system must be converted into practical, workable change to encourage firms to take on staff.
Posted by Jon Aspinell
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