Key issues for businesses

The pre-budget report states that small and medium sized businesses account for a significant proportion of foreign trade yet they are feeling the pinch due to high tax levels and the ever upwards creep of red tape and regulation. In addition they are suffering because of a crumbling transport infrastructure and education system that does not properly prepare school leavers to achieve in the global market place.

Sussex Enterprise, The Chamber of Commerce for Sussex put forward the views of its member businesses along with other chamber of commerce across the UK. The report highlights four policy areas that are crucial for the government to focus upon to provide the right climate for business.

TAX

The priority is still for a lower tax burden and a simpler tax system. In particular:

The UK's corporate tax rate of 30 per cent needs to be brought into line with the EU average of around 25 per cent.

National Insurance needs to be significantly reformed. Rules relating to NI should be aligned with those that govern PAYE income tax and placed on a cumulative basis.

TRANSPORT

The report urges the government to think long term about the impact that the transport infrastructure has on the UK's productivity, stability and growth. The majority of businesses in Sussex (83%) agree that better transport links along the coastal corridor are essential for the future health of the local economy.

SKILLS

Sussex Enterprise and the BCC would like to see reform of the education system so that young people are better prepared for the world of work when they leave school. There should be a particular focus on:

Functional basics with all students getting experience of work-based and vocational learning.

The mainstreaming of enterprise through the curriculum.

More young people studying subjects that are in the interests of the economy.

Broad-based programme of study for all young people so that their options are not restricted too early.

The stretching of the very brightest students.

26% of businesses in Sussex have experienced problems with poor vocational skills, while similarly 29% have had problems with poor managerial skills.

REGULATION AND RED TAPE

BCC research has demonstrated that regulation continues to inhibit the competitiveness of British business with the 2006 Burdens Barometer measuring a cumulative burden of 50.27bn. Over half of Sussex businesses (58%) say that the amount of red tape that their company has to deal with affects the company's profitability.

Mark Froud, Chief Executive at Sussex Enterprise, said:

"Whilst business in the UK is still highly competitive on the World stage it is crucial that the government does not take our position for granted.

"There is growing consensus that Corporation Tax needs to be cut whilst the poor state of our transport infrastructure is hardly a secret.

"We are in a period whereby economic growth has been sustained over the long term and we urge the Chancellor to take measures next year to ensure this continues into the future. We are calling on him to address our four key areas of concern in order to ensure that Britain remains a competitive and attractive place to do business."

For more information and to download a copy of the BCC's pre budget submission report visit www.britishchambers.org.uk