CBI sets out 10 point action plan for business

Getting cash flowing to businesses large and small is at the heart of a ten point action plan announced today by, Richard Lambert, director-general of the Confederation of British Industry (CBI).

The CBI believes the moves it proposes in a letter to the Prime Minister, who made a surprise appearance at the Confederation’s annual conference this morning, are vital to avoid otherwise healthy businesses going under and a recession being prolonged.

On issuing the action plan Richard Lambert said:

The biggest threat hanging over businesses is cash flow. If they cannot get their hands on the cash and credit they need to go about their day-to-day business, there is a real risk we could see healthy firms going under.

The CBI website has full details of the action plan, but the key points are as follows:

1. Improve the flow of capital to business
2. Counter the withdrawal fo trade credit insurance
3. Prevent questions about ‘going concern’ status from reinforcing the downturn
4. Modest business tax cuts to ease cash flow (including scrapping empty property relief rates and temporarily freezing business rates
5. A short term special low rate of National Insurance Contributions for qualifying SMEs and postponing a rise in the rate of corporation tax for small companies
6. Introduction of time-limited fiscal stimulus measures focused on jobs
7. Accelerating planned public capital spending
8. Supporting corporate pension provision
9. Improving the nation’s skills
10. Supporting the UK’s exports