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Chancellor urged to stimulate business growth ahead of Spending Review


Business groups are calling on the Chancellor George Osborne to stimulate investment and growth ahead of the Government’s Spending Review later this month.


In its submission to the Chancellor, the Federation of Small Businesses (FSB) argues that the Spending Review should encourage investment in small businesses in order to boost jobs and growth.


The organisation wants to see reform of the ‘enterprise support landscape’, as well as further clarification on how the new Business Bank will be financed.


It is also urging the Government to maintain funding in areas such as skills, exports, broadband and transport.


Meanwhile, the British Chambers of Commerce (BCC) is also calling for a shift in government spending towards capital investment that it claims will help to get the economy back on track.


It proposes a greater focus on investing in capital assets including transport, energy, education, digital and other local economic infrastructure, such as road maintenance and house building.


In a recent poll by the BCC, 68% of respondents said that spending priority should go to economic development, including trade promotion and business support.


Some 42% of businesses ranked the reduction in public spending and taxes as their preferred option to boost the health of the UK economy, compared to only 13% of firms who listed higher public spending and higher taxes as their first choice.


Commenting, BCC Director General, John Longworth, said: ‘This is the Chancellor’s last chance to make a real difference to the health of the UK economy, this side of the next general election.


‘Our Spending Review submission, based on business opinion, is calling for a radical shift of focus towards areas like infrastructure, economic development and skills - the big enablers of an enterprise-friendly economy.’


He continued: ‘Our submission proves that the government can have its cake and eat it. It can continue to reduce the deficit while investing heavily in measures that will support growth’.