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Business vote 'up for grabs' says CBI's Jones
Ahead of this weekend's CBI conference Digby Jones has warned there is a "palpable sense of frustration" at the failure of government to understand business needs.
The CBI director general says he is pleased the chancellor and the prime minister are to address the conference.
Jones says he wants senior ministers to hear first hand what business wants from the government. "For too many companies this government has been synonymous with increased taxation, yet more regulation and a sub-standard transport system," he says in an article for The House Magazine.
"Many areas of government policy seem to have conspired to make business life even more difficult. And the casualty is always the ability of UK companies to be internationally competitive."
Welcoming the new Tory leader, and Lib Dem leader Charles Kennedy, to the conference Jones claims "the business vote is up for grabs".
"During the next two years business will be taking a very critical look at all the political parties and their ability to deliver a pro-business agenda. Our conference will mark the start of that process," he says.
Jones says that business believes trading conditions have got worse under Labour.
"But I hear anecdotal evidence from member companies every day of the week that suggests that the business climate has deteriorated in recent years and, even more troubling, that they expect it to decline further in the years ahead," he writes.
Whilst he recognises that manufacturing has been hit by the global slump he warns ministers have made matters worse.
"The government hasn't helped with the build up of regulation, increases in business taxation and a failure to improve the transport infrastructure," says Jones.
"And a government openly committed to manufacturing could do so much more to help by spending UK taxpayers' money on quality goods and competitively priced services made or provided in Britain.
"We are not looking for a hand out or cheating, just intelligent procurement."
The tax burden remains a "bone of contention" between the CBI and the Treasury, the CBI chief adds.
"The fact is that the UK is no longer as good as it thinks it is on tax competitiveness and it's certainly not as competitive as it should be," he warns.
"Britain's main business taxes are just above the average of our main trading partners.
"We are on a par with Germany and the Netherlands, but worse than the US and Ireland. Only France takes a significantly higher share."
And Jones says that trouble is brewing in areas such as transport.
He attacks ministers over their failure to respond to the demand for increased airport capacity in the South East.
"Under-investment in our transport infrastructure goes to the heart of the problems facing business in every part of the country. Congestion on Britain's roads costs the UK economy £20 billion a year and we have the most congested roads in Europe," he notes.
"We compare badly with our competitors in all other areas of transport. The government must improve the planning process if it is to speed up delivery and put into place a long term sustainable transport infrastructure.
"What does it say about the second biggest economy in Europe when we can't even get a runway - crucial to the UK's future competitiveness - built quickly?"
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