Time for the coalition to take hard decisions

Bill Midgley
Past President at British Chambers Chambers of Commerce


Post date: Thursday, 15th December 2011

The success of individual businesses right now is in spite of government policy rather than because of it, argues Bill Midgley.

For a government that still expects the private sector to create the base for economic growth and increasing employment, the policies that it follows or tries to so do may well confuse some. The latest announcement to reduce the staffing levels of The Business and Enterprise Group by something of the order of 50% in addition to the lay-offs of last winter hardly sends out a message that Whitehall and Westminster really have any understanding of the degree of support that the business community needs.

The demise of the Regional Development Agencies, patchy as their performance may have been in some areas and at times, has left a vacuum with no indication that what is to follow will bring about decisive and effective results but only regional in-fighting. The Banks continue to play their own games, claiming that no one wants to borrow, yet businesses are shown the shortest way to the exit on far too many occasions. Those Banks that are owned, or part owned, by the taxpayer continue to follow their own interests and not that of the broader economy with the Treasury either unable to direct policy or, perhaps, to understand how the banking community operates. Certainly they do so with more intelligence and guile than ministers.

The business minister and the chancellor appear to be following separate agendas, and the governor of the Bank of England has been described as 'stubborn'. Although given that the last comment was made by the chancellor in the last government this may be a strength rather than a weakness. The level of apparent inactivity in government may well be the outcome of coalition. For decades a coalition government has been seen as a preferable form of rule rather than that of purely political extremes. A broad based administration representing the interest of the community before party. Perhaps not quite how it now appears to works in practice as it far too often forms the basis for inactivity.

The coalition has certainly given rise to excuses for broken promises and in a far broader area than the economy. Usually because a ' compromise' has to be reached but far too often what appears no more than a reason for not taking hard decisions. Governments should lead, not be looking for the soft option because it may upset partners, particularly given the needs of the national economy. At some stage Members of Parliament will realise that the next Election is likely to be decided on the success, or lack of it, of our economic performance with the danger of last-minute short-term actions bringing no lasting benefit. Probably nothing new in that - three years hardship and a year or so of 'improvement'…the political path followed by too many governments in this country since 1918. Yet ironically coalition does work, ask the Germans!

So where does all of this leave the business community. Criticism is easy, finding a solution is a far more difficult task which is why complainants often fail to put forward alternatives. I suspect that business will have to do what it has so often done before and that is to go on in spite of government policy rather than because of it. To look after its own interests and adjusting to whatever passes for policy. In that respect even a poor policy is better than a vacuum as companies can adjust their strategies accordingly. And, hopefully, government will realise that those who know best how to do it are those who actually do do it. Not those representatives of local, regional and national government. Not accountants, consultants, advisors and the whole range of followers, but those at the sharp end. Recognition, and a friendly ear, needs to be given to those who succeed in business and those trying to do so. They do not need telling, they need to be listened to.

Politicians are good at jumping on successful band-wagons and claiming credit for the achievements of others. That is fine as long as they support and do not hinder. Business is big enough to live with that as long as those who get in the way of success take a secondary place.

This article first appeared in Business Today, Issue 4. To read the entire publication, click the ebook.

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