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North East welcomes Brown’s business proposals

Gordon Brown’s comments to businesses this week have been cautiously welcomed by industry leaders in the North East.

Speaking to CBI delegates at the organisation’s annual conference in London, Mr Brown pledged to keep the country’s fiscal support measures in place long enough to sustain economic recovery.

He also said the government would be careful not to abandon financial stimulus measures brought in to combat recession.

“Choking off the recovery too soon would be fatal” he said.

Mr Brown also told business leaders the UK had to be “truly competitive” to succeed in the global economy. He wants to see a big increase in the number of Chinese companies working in the UK, rather than the current level of around 400.

“We need an outward facing Britain that can attract large scale inward investment and sustain high value added jobs.”

Mr Brown promised that the UK would lead the world in fast broadband by 2012, increase nuclear energy capacity to help the country achieve its low-carbon aims, speed up planning permission for infrastructure and invest in skills and science education.

Andrew Sugden, director of membership and policy at the North East Chamber of Commerce (NECC) said: “Gordon Brown is right to say fiscal policy must not be tightened too quickly as this could choke off economic recovery. North East businesses now need to see Chancellor Alistair Darling respond to this in his Pre-Budget Report next month.

“He must extend the size and the length of his concession on empty property rates, continue the increase in capital allowances for investment, maintain the stamp duty holiday to support the housing market and once more postpone the increase in the small companies rate of corporation tax.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .