Chancellor George Osborne must go for growth in his Autumn Statement – that’s the view of the Coventry and Warwickshire Chamber of Commerce chief executive Louise Bennett.
Bennett insists that the Government shouldn’t stray from its deficit reduction plan because that has helped maintain confidence in the UK economy and has kept interest rates low.
But the Chamber chief executive believes targeted measures to boost economic growth should be introduced to help build on the one per cent GDP growth in the third quarter of 2012.
One measure builds on the Chamber’s Exporting is Good for Coventry and Warwickshire campaign to get more firms in the region trading overseas.
The Chamber wants to see a new Export Voucher scheme that could encourage those companies that are considering exporting to take the all-important step to access the support they need to sell their goods and services abroad.
It also wants to see more in-market support for UK exporters in key global markets.
On top of that, the Chamber is calling for a Growth Voucher scheme that would get £5,000 each into the hands of around 20,000 companies around the UK with clear and viable strategies for growth.
To further back growth, the Chamber says there should be a new £1bn capital allowance scheme that could help incentivise investment in infrastructure projects.
The call comes on the back of research from The British Chambers of Commerce, which says the funding for those schemes can be found without accruing further Government debt.
Bennett said: “There is absolutely no way that complacency can set in because of the positive GDP figures in the third quarter of this year.
“There is still a very, very long way to go before we can say we are seeing a sustainable recovery and a rebalancing of the economy.
“So it’s vital that the Chancellor grasps the nettle now and puts in place several measures that can foster growth in the economy.
“We know there are businesses that have the capabilities to grow both on the domestic front and on the international scene, but they need support to do that.
“Some bold decisions need to be taken but it’s crucial that we build on the recent positives within the economy to ensure short, medium and long term growth.”
Bennett has also called for the creation of the long-awaited Business Bank to help firms which need access to finance to aid their growth.
The British Chambers has also called for an ‘unblocking’ fund to be made available to kick-start stalled housing developments.
The money could be targeted towards roads and other infrastructure that are required on new developments.
David Penn, a Chamber board member and managing director of Shortland Penn + Moore, said: “We would welcome such an initiative to kick-start stalled developments, the majority of which will inevitably have stopped due to a lack of funding.
“There is no doubt that current new home completions fall woefully below what the country needs and that’s across all housing types, from affordable to aspirational.
“Further, we encourage Local Authorities to be realistic in their demands for public contributions from developers. While the general principle for such contributions is sound, if they are set too high, they will simply add to the blockages to much needed construction.”
