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Budget should ?build confidence and competitiveness'

British businesses are calling on the Chancellor to deliver a “confidence-building budget”.

The Confederation of British Industries (CBI) wants Alistair Darling’s forthcoming budget to be shaped around supporting jobs, investment and competitiveness during the recession. The business group is also urging him to come up with a “clear and credible strategy” to get the public finances back under control.

The CBI has warned that the current state of public finances rules out the option of a further significant fiscal stimulus, which would undermine business confidence in the UK.

The organisation’s proposals include modernising public services to make better use of government spending, pushing ahead with building programmes in schools, hospitals, transport and communications, and introducing a temporary subsidy for master’s degree courses in science, technology, engineering and maths to reduce the impact of the recession on the current generation of graduates.

Sarah Green, Regional Director, CBI North East said: “The Chancellor needs to let the considerable stimulus already in the pipeline take effect and deliver a clear and credible plan for restoring the public finances to health.

“We need to see measures to instil confidence by supporting as many businesses through the recession and safeguarding as many jobs as possible. That means not adding to the cost of employing people with business tax rises at a time when companies are fighting for survival.

“With several years of belt-tightening ahead, we need to squeeze the value out of every penny of taxpayers’ money, ensuring public services deliver both quality and value for money.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .