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Cabinet ministers for business and economy stay put

David Cameron’s cabinet reshuffle on Tuesday saw a number of moves for ministers, although those responsible for UK business and the economy largely remained.

Business secretary Vince Cable has retained his position, while Iain Duncan-Smith kept the Work and Pensions Secretary post.

The Prime Minister demoted ex-Culture Secretary Andrew Lansley to replace him with controversial figure Jeremy Hunt, who was involved in investigations earlier this year into takeover bids for BSkyB.

The Transport Secretary role has been taken by former Chief Whip Patrick McLoughlin, who has replaced Justine Greening, amid media focus on third runway proposals for Heathrow Airport.

Members of the Institute of Economic Development criticised a lack of movement to “enhance prospects for economic recovery”.

The Chair of the IED, Keith Burge, said: “At the weekend the Prime Minister pledged to stop the dither he claims is holding Britain back. Although he seems to have been referring to others, it might have been an idea to get his own house in order first.

“Each of the Ministers with responsibility for economic development (at the Treasury, BIS and CLG) is staying put, even though none has demonstrated any desire to invest in economic development in a considered and sustained manner.

“It can only be hoped that once the game of musical chairs around the Cabinet table stops, that someone realises there is a need for swift and decisive action to get the economy going once again.”

Senior policy advisor at the Forum of Private Business, Phil McCabe, said: “Mark Prisk has had an extremely difficult job during unprecedented economic times, and we thank him for the work he has done to help the small businesses sector while in post.

“But we think now is the time for a more radical approach to jump start UK business growth, and Michael Fallon has to come out of the traps quickly with fresh eyes, fresh thinking, and be prepared to consider the unconventional.

“We need further work to reduce late payment, including more action to force public bodies such as local councils to pay their suppliers promptly.

“We need new tax breaks for small businesses, and a reduction in red tape which actually leads to less time-consuming bureaucracy and form filling. These are absolutely fundamental issues.

“We also believe the new Business Minster should revisit the Coalition’s finance policies and find new ways to get banks to start lending to SMEs, as well as pave the way for alternative funders to compete more effectively in small business finance markets”

Mr McCabe added: “There’s no doubt that this is a portfolio of goliath proportions and there are mountains ahead to climb, but the Forum and all our members wish the new minister every success in the job.”

This was posted in Bdaily's Members' News section by Miranda Dobson .