Reducing the deficit must remain a top priority for the next government, although major changes are also needed to prevent public services suffering “decline by a thousand cuts”, according to the boss of the employers’ body the CBI.
John Cridland also called for radical reform of the education system and the European Union.
In his new year message, he pressed the case for cementing the UK’s reputation as one of the best places to do business.
He said: “For business leaders, deficit reduction is a must for the next government.
“The main political parties are in agreement on the need for action but seem reluctant to be upfront on the major structural changes needed to prevent public services suffering decline through a thousand cuts.
“All political parties need to give as much attention to how they will run government as to what government should do.
“Post-autumn-statement, the same approach to public service reform is no longer an option. Much of the low-hanging fruit is long since gone and only radical solutions will deliver.
“Let’s see the integration of health and social care, and a significant increase in services available online.”
Cridland outlined changes to the education system such as the scrapping of GCSEs for 16-year-olds and introducing a “personal menu” of learning plans for teenagers, offering a mix of academic and vocational A-levels.
“By boosting skills we will see productivity rise – along with earnings,” he said.
Advertisement
The CBI leader said most of his members wanted to remain in a reformed EU, adding: “We need less EU – no more lifestyle regulation on matters like employment, such as the working time directive, which should be left to member states, and no more damaging regulations on UK financial services that are vital to fuelling growth across Europe.
“Political isolationism would leave us poorer. The majority of CBI member companies of all sizes want to remain in a reformed EU.” Cridland called on the UK to sign more trade deals.
He said that while the UK economy was among those achieving the fastest growth in the G7 – with 2.5% growth predicted in 2015 – there were risks. “The political and economic risks at home and abroad represent a clear and present danger. As the election countdown accelerates, I urge politicians of all hues not to take their eyes off the economic ball,” Cridland said.
Topics
Confederation of British Industry (CBI) Budget deficit Economics Public sector cuts Public services policy Public finance
Share on Facebook Share on Twitter Share via Email Share on LinkedIn Share on Google+
Advertisement