CBI responds to Mansion House Speech

CBIThe CBI has responded to a speech from the Chancellor of the Exchequer at Mansion House.

John Cridland, CBI Director-General said:

On Government plans to run budget surpluses each year:

“Business wants the Government to aim for an absolute budget balance over the economic cycle, so the Chancellor’s plans will be well-received. This will create a platform for the fiscal discipline required to keep national debt as a share of GDP on a downward trajectory and provide the flexibility to deal with economic shocks.

“Underpinned by clear fiscal rules, we must get on top of the public finances in a way that is growth-friendly. The heavy lifting must come from savings to current spending so we need a step-change in the approach to public service reforms, while prioritising growth boosting spending, such as capital investment and innovation.”

On competitiveness of the UK financial sector:

“A vibrant financial sector is absolutely essential to a successful UK economy and gives firms the access to finance they need to match their growth ambitions. Signals from the Chancellor that the Government is focused on the City’s competitiveness are welcome as there have been recent indications that the UK is starting to compare less favourably to other global financial centres.”

On RBS & Lloyds:

“RBS and Lloyds Banking Group are important players in the UK financial services sector for both businesses and individuals, and their long-term futures are best served in private ownership. It is a sign of strength for both banks that they are now ready to return to private ownership, and the approach to this should deliver a good result for the taxpayer.”

On Eurozone integration

“While the Eurozone continues to integrate, we should not fear a multi-sphere Europe so long as the interests of the UK and other non-Eurozone members remain protected.”

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