Government spending must help the economy grow, BCC says

The British Chambers of Commerce (BCC) is urging government to help business boom as it considers its future spending plans.

As the Comprehensive Spending Review looms this Wednesday it has set out the key asks that business believe can help grow the economy.

The BCC is urging the government to invest in infrastructure by delivering more transport and energy projects and better grid connectivity and to provide long-term funding and practical support to help SME’s adopt Artificial Intelligence (AI) to boost productivity and growth.

They are also suggering the government sets out long-term funding for Project Gigabit; AI is of no use if too many areas of the country are still in broadband blackspots, to help get Britain thriving.

The govenrment is being urged to transfere more Apprenticeship Levy funding from the Treasury to the Department for Education so it can be spent on training, to get Britain working.

The BCC is suggeting the government to expand the Youth Guarantee – to help young people find jobs, training and education – to include anyone between the ages of 18 and 24 and also involve more employers in skills planning by extending investment in Local Skills Improvement Plans and addressing gaps in training provision.

To get Britain trading the BCC is urging the government to provide global leadership by investing in digital trade by giving SMEs better support to export and promote their products and building upon the success of last year’s International Investment Summit by developing a pipeline of overseas investors into the UK.

The BCC’s recommendations were shaped after extensive consultation with its Business Council and 51 Chambers across the UK.

They also factored in research by the BCC’s Insights Unit, involving more than 5,000 businesses, on the key issues holding back growth.

Shevaun Haviland, Director General of the BCC, said, “The decisions taken in Wednesday’s spending review will impact the future shape of our economy for years. This is an exam question the government cannot afford to get wrong.

“But the answer is very simple. It needs to put more time, money and effort into supporting business. That’s a downpayment on our future prosperity

“So, if the government wants strong and consistent economic growth, it has to look at three key areas.

“It must promote consistent investment in people, in infrastructure and in trade. If it provides the support businesses need to thrive, in an increasingly competitive and protectionist global market, then the future can still be bright.”