BRC calls for more government action on productivity
Chancellor must tackle barriers of taxation and regulation, says Moyes
June 12 2002
The British Retail Consortium says the government’s drive to improve UK productivity does not go far enough.
Director General Bill Moyes has called on the Government to tackle what he says are the two major barriers to increasing productivity for UK businesses, taxation and regulation.
Chancellor Gordon Brown has pledged that the current spending review will focus on productivity through increased public investment in training and skills, transport infrastructure and the planning system.
The BRC welcomed the announcement, saying that the UK’s poor record on skills and training, especially vocational skills, has a direct and negative impact on the productivity of the retail sector. The ability of retailers to attract and retain staff is also hampered by poor public transport links
The transformation of government words into real investment would be welcomed by the retail sector, said Moyes. “Whilst we welcome the Chancellors’ commitment to boosting the UK’s productivity through public investment, the BRC has strong concerns about the negative impact on productivity of increases in national insurance, stamp duty, and the new land development tax. The increase in national insurance alone could mean the loss of more than 10,000 jobs within the sector, whilst the proposed land development tax will jeopardise future new stores and redevelopment.
“If government really want to boost the productivity of UK plc they should combine public investment with a sensible attitude towards taxation and regulation.”
