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Get Britain Out Of The Red, Says Cbi

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Get Britain out of the red, says CBI

The head of the main employers' organisation told Gordon Brown last night he was guilty of "economic vandalism" and cast doubt on the Government's forecast that the recession would end by Christmas.

Martin Broughton, the president of the CBI, told the Prime Minister that the announcement of a 50p top rate of income tax in last month's Budget was an attempt to "divert media attention" from the Government's failure to get a grip on public borrowing.

Speaking at the CBI's annual dinner in London he said: "Tearing up the [Labour] manifesto commitment to the country's entrepreneurial class – the major job creators – was nothing short of economic vandalism. What's more, the tax take is likely to be minimal."

Although the Government's initial response to the financial crisis had been admirable, he said much remained to be done. With the UK in the teeth of a major recession, the Budget was his "biggest concern". He added: "The use of heroic growth assumptions, together with a timetable extended to 2018, amounted to a serious failure to address the deficit in a way that gives confidence to buyers of our debt."

Mr Broughton said the Government must review its priorities, strip out the "nice to haves" and focus on core activities to bring down the budget deficit. He added that if business was responsible for cutting the deficit, it would "divest or discontinue activities that are peripheral or 'non-core', focus on delivering key services that are currently mismanaged and reform public-sector pensions".

"We would [also] start educating the public to accept that it is not the Government's role to address every issue in society," he added, asking: "How many of the 1,000 quangos costing £65bn a year do we really need?"

Mr Broughton said the public's perception of business had been badly damaged by the financial crisis. "Many of us in the 'real world', as we delightfully like to call it, feel let down by those in the 'financial world' whose actions have damaged us economically but also tarnished our reputations along with their own."

He said a number of positive aspects could emerge from the crisis and that real benefits could be gained from the current mood for global co-operation. Instead of two different groups to represent the world's largest economies – the G8 and G20 – he advocated one medium-sized group. "I don't know what the right G-force is but it's not a G8," he said. "I'd guess that a G15 would be the best outcome, covering 80 per cent of world GDP, and every continent, but bringing emerging economies on to the top table."

In his own speech to the dinner, Mr Brown made clear the Government was sticking to the Chancellor Alistair Darling's forecast that the economy would return to growth by the end of the year.

The Prime Minister promised there would be no "complacency" about Britain's economic situation, but insisted the country was better placed than it had been during previous downturns.

Mr Brown's official spokesman said: "We need to ensure the banks deliver on their commitments on bank lending and we need to push ahead with the action we are taking on fiscal policy in order to mitigate the impact of global problems on the UK." He said that Japan's economy had shrunk by 4 per cent in just one quarter, with the euro area and Germany also suffering bigger falls than the UK.

Not many willing to stand behind Gordon these days, especially those in the 'real world'. I wonder if he is getting any sleep, because he has visibly aged a heap since the downturn began.

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Probably a good case of the pot calling the kettle black, since there are probably a lot of CBI affiliated companies that are in the red too!

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Hey don't get me wrong here. The CBI can take a collective long walk off a short pier, but having them publicly refer to Gordons' precious economic husbandry as 'economic vandalism' is sublime.

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Just the CBI switching sides.

Load of twonks, they supported, nay brayed for the low rate policy that gave Gordon the wind to carry on his profligate ways. Now they complain. Pathetic.

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Just the CBI switching sides.

Load of twonks, they supported, nay brayed for the low rate policy that gave Gordon the wind to carry on his profligate ways. Now they complain. Pathetic.

hear hear

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...and Martin Broughton has no sub-agenda and has not been waiting for the optimal time to put the boot in?! Correct me if I'm wrong but isn't he Chairman of British Airways, a company which has been consistently under attack by this government's tax grab policies (under the guise of green initiatives).

He may be right but all these VI's... :unsure:

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Just the CBI switching sides.

Load of twonks, they supported, nay brayed for the low rate policy that gave Gordon the wind to carry on his profligate ways. Now they complain. Pathetic.

+1

Every time I used to see Digby Jones on the news, he was begging for lower interest rates.

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The head of the main employers' organisation told Gordon Brown last night he was guilty of "economic vandalism"

Come on man! Catch up! Next you'll be writing a strongly worded letter to Herr Hitler telling him to keep away from the Sudetenland. :rolleyes:

This is such a belated act of stable door bolting that the stable itself has now been converted into apartments for "young professionals" (who have since gone bankrupt) and the horse turned into Chunky Kennomeat for dogs that have since themselves died of old age.

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Not many willing to stand behind Gordon these days, especially those in the 'real world'. I wonder if he is getting any sleep, because he has visibly aged a heap since the downturn began.

Good, I hope he barely sleeps, knowing what a failure he is and how many lives he has pointlessly destroyed for his ideology and by his incompetence.

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Mr Broughton said the public's perception of business had been badly damaged by the financial crisis. "Many of us in the 'real world', as we delightfully like to call it, feel let down by those in the 'financial world' whose actions have damaged us economically but also tarnished our reputations along with their own."

:lol: Splitters!

Only too keen to cuddle up them before though weren't you. You were calling for the Treasury going "all in" in January using "innovative use of monetary policy tools" to stem the flood of City job losses.

The CBI said that initiatives should include measures such as the Government lending directly to companies and topping up credit insurance for businesses if they can not organise sufficient cover to continue trading.

John Cridland, the CBI's deputy director-general, said that such measures required planning "because they have not been employed in a generation". However he said that the Government still "needs to move with quicker speed".

I wonder where they hoped the money for that was going to come from.

Obviously not from borrowing or tax payers.

The CBI make the Unions look modest, forward looking and balanced in their demands.

Edited by Cogs

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Probably a good case of the pot calling the kettle black, since there are probably a lot of CBI affiliated companies that are in the red too!

and a good number of cbi members, i would imagine, who have benefited from all this govt./public sector spending largesse.

how about all that money spent to win public sector contracts. an entire sector has mushroomed with the sole aim of being the chosen ones, these preferred bidders.

if the govt. doesn't spend this fake prosperity quickly shrivels. the next time this chap wants to complain about govt. spending excesses he should remember who many of the benfeciaries are in 'industry'

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