Dr Cable argues in his paper, A Strategy for Sustainable
Growth, that striking the right balance between making savings
to public spending and promoting sustainable growth is crucial.
But in bringing spending under control the Government is
determined to create an environment that enables businesses to
invest with confidence, thereby putting the recovery onto a
sustainable footing and preparing the economy for the future.
The biggest risk to the nation’s economic future is not
controlling the deficit effectively, he argues. British
business cannot prosper while the risk of a debt crisis hangs
over the economy.
The Government has taken decisive action to reduce the deficit
through measures in the emergency budget – which has also set
out new opportunities for enterprise and sustainable growth.
Business Secretary will say:
“Despite the demands of fiscal austerity we have the tools and
capacity to achieve sustainable growth and there is a role for
Government to ensure they are used effectively.
“My department, which I have argued should be seen as the
“department for growth”, has a key role to play in creating the
conditions for businesses, the drivers of our economy, to start
out, invest, grow and be profitable which is critical for the
recovery.
Our aim at BIS is to reshape the economy so that growth comes
from business investment and exports.
We need to rebalance away from an economy built on debt to a
one that is greener and more technologically advanced. Our
economy also needs to be prepared for the long term challenges
ahead – the switch to lower carbon technologies in
particular. This should also build on the UK’s historic
strength in science and technology.
“It is also vital that we create opportunities that are spread
more across the regions, and through those sectors where the UK
is strong and can add real value.”
The new plan sets out the three key ways that the department
for Business, Innovation and Skills can contribute:
-
promoting free and open markets.
-
promoting business and innovation through
entrepreneurialism and individual engagement in the
economy;
-
smarter public and private investment in the economy
including creating a highly-skilled workforce and;
To generate growth Ministers are determined to create an
enterprise culture where everyone with talent is inspired and
able to turn ideas into successful businesses. Getting rid of
unnecessary barriers that can stifle growth and creating
incentives will be vital.
Dr Cable argues that it is a shared challenge across Government
to create a more sophisticated approach that directs public
spending at those areas where they can have the greatest impact
on growth and takes wider account to ensure that policy
protects and supports the business environment. Dr Cable wants
to ensure that what the public sector does spend encourages
increased private sector investment.
The paper published today will be followed by a number of
initiatives from BIS designed to foster and encourage growth
and a cross Government White Paper will follow later in the
year.
Science and Universities Minister will deliver on
Wednesday his first major speech on space where he will outline
how we will become a world leader in this area, one which is
increasingly important to all our lives and one that can be a
powerful vehicle for economic growth. BIS and the Treasury will
also publish a green paper shortly looking at options to ensure
finance is available to a range of businesses of different
sizes.
These come ahead of a consultation document on skills to be
published by Skills Minister, , which will lay out the
Government principles for the skills system in the backdrop of
reduced spending on skills and seek views on a way forward.
Later this year Government will also publish a White Paper on
new approach to sub-national growth. It will detail the
Government’s strategy for supporting economic growth across the
country. In particular, it will set out the changing approach
to regional economic development.
Notes to editors
1. To view A
Strategy for Sustainable Growth please go to www.bis.gov.uk/growth
