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ACE reacted to today's Budget by welcoming the growth measures announced, but cautioned that there is still a long way to go. The extra funding and earlier start for the Green Investment Bank and proposals to establish Enterprise Zones could help to stimulate economic development, particularly outside of London and south east England.
There was also a welcome commitment for planning authorities to presume in favour of sustainable development and prioritise growth and jobs, which should help to ensure a balanced view of development at a local level.
However, there were few other proposals to encourage private sector investment in infrastructure, nor were there further proposals to increase transparency across government.
Nelson Ogunshakin OBE, ACE chief executive, said: “Investment in infrastructure is vital for economic growth. Without a rigorous focus on overcoming barriers to private sector investment, the economy will continue to face challenges. Today's announcements represent a starting point, but there is much more to be done.”
The government’s attempt to safeguard jobs in the construction sector by providing subsidised loans for first-time buyers is also a welcome first step in re-invigorating the housing market.
A larger-than-expected 2% cut in corporation tax rates plus an extension of the business rates holiday will be welcomed by business.
However, there was little attention paid to reform of regulated infrastructure to achieve lasting efficiencies. There are also questions over whether the proposed carbon price floors are high enough to drive investment in low-carbon energy.
Nelson Ogunshakin added: “There is scope for further structural reforms to tax, procurement, planning and regulatory regimes, as well as prioritising education spending to support technical skills. All of this will help to encourage economic growth and prepare the UK for a low-carbon future. Business is keen to work with the government to make this happen.”
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For media enquiries please contact Gavin Pearson (020 7202 0255 or gpearson@acenet.co.uk)
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