Firms ‘have little faith in politicians’

Apr 28 2008 by Alistair Houghton, Liverpool Daily Post

BUSINESSES have lost almost all faith in politicians and political parties – that’s the message ahead of today’s flagship British Chambers of Commerce (BCC) convention in Liverpool.

The event at the BT Convention Centre features some of the biggest players in the British business world, from Tesco chief executive Sir Terry Leahy to BT chairman Sir Michael Rake.

A BCC poll released today shows 85% of businesses do not believe that politicians understand the needs of business.

Asked what they believed was the most important issue the next Government should prioritise, 34% said taxation, 29% red tape and 11% transport.

And when asked about whether a Labour or Conservative Government would prioritise the needs of business, the answer was low for both parties: Labour at 14% and the Conservatives at 22%.

The survey challenges two leading politicians who are set to address today’s event – work and pensions secretary James Purnell and shadow chancellor of the exchequer George Osborne.

David Frost, director general of the British Chambers of Commerce, said: “These figures paint a depressing picture of the faith the business community have in politicians.

“With many having very little practical experience working in business, it is unsurprising that MPs do not come across as sympathetic to the need of business.

“High levels of tax are clearly the number one problem. The main competitors for British firms are no longer in the neighbouring streets or towns but half way around the world in countries that have far lower rates of tax.

“If we are to remain competitive, then the Government must cut taxes for both large and small firms and look at reducing other damaging taxes such as fuel duty.

“The business vote is clearly up for grabs and we will be looking to the politicians to make clear today what they will do to ensure the needs of business are made a priority.”

The survey of 250 companies, carried out by Populus for BCC, also showed 57% of firms said the credit crunch had not affected their ability to access funding for their businesses.

Mr Frost said today’s convention would shine a spotlight on the small firms who make up the backbone of the British economy.

He said: “Our members are the backbone of the British economy and they are on the frontline of these intense global challenges.

“What has impressed me over recent months has been their amazing resilience. If you lived your life in London, you would often be left with the impression the economy was about to fall off a cliff. From my visits around the country, I can assure you it is not.”

Subjects up for discussion at today’s event include supporting business in today’s challenging economic climate and encouraging creativity and innovation.

Liverpool Chamber of Commerce chief executive Jack Stopforth said: “It’s a strong line-up at this convention and we’re very pleased with it.

“It’s not just about the headliners – it’s the local speakers as well.

alistairhoughton