STORY
Business leaders have called on Chancellor John Healey to accompany the Government’s ‘Buy British by design’ procurement policy with action on taxation, energy costs and regulation. Healey has said that public procurement should be used to support British jobs, apprenticeships and businesses, with departments expected to favour domestic economic benefits when spending public money.
Industry figures quoted by The Sun said that procurement changes would not on their own address the pressures facing firms. Representatives from construction, motoring, farming and hospitality called for measures including changes to VAT, lower energy costs and reductions in regulatory burdens. Hospitality businesses renewed calls for a lower rate of VAT, while manufacturing and motoring figures highlighted the effect of high industrial energy prices on competitiveness.
The Government has said that supporting British business and using public spending to generate domestic jobs form part of its wider growth strategy. Prime Minister Andy Burnham has also promised a stronger relationship with business and greater use of procurement to support UK companies. The specific tax and regulatory changes sought by the industry groups have not been adopted by the Government and will add to pressure on Healey ahead of his first Budget.