' a stable government with the authority to take the tough decisions
required to keep the economic recovery on track... '
The CBI has welcomed the agreement between the Conservatives and the Liberal Democrats to form a new administration, calling for a stable government with the authority to take the tough decisions required to keep the economic recovery on track and to get a grip on the fiscal deficit. The CBI said the coalition document shows a clear commitment to tackling the major issues. It said the significant acceleration in the reduction of the structural deficit and the plan to achieve it through reduced spending rather than increases in taxation will provide comfort for international investors and underpin growth at a critical time.
Richard Lambert spoke to the new Chancellor, George Osborne, on the day of his appointment, and congratulated him on his new role. Then and in a subsequent letter to Mr Osborne, Richard set out the CBI's key priorities for the economy, which include addressing the UK's fiscal position, undertaking major reform of the financial system and of business taxes and ensuring continued investment in UK infrastructure. On business taxes it will be vital to ensure that business assets are excluded from the proposed increase in capital gains tax. The CBI has also written to all the other members of the new Cabinet and will be holding meetings with them at the earliest opportunity.