A plan to foster growth and lock in the recovery will be published today by the Business Secretary Vince Cable when he appears for the first time at the Business, Innovation and Skills Select Committee.
Dr Cable argues in his paper, A Strategy for Sustainable Growth, that striking the right balance between making savings to public spending and promoting sustainable growth is crucial. To promote growth there is a need for cuts but in doing so Government is determined to create an environment that enables businesses to invest with confidence.
The new plan sets out the three key ways that the department for Business, Innovation and Skills can contribute:
- promoting business and innovation through entrepreneurialism and individual engagement in the economy;
- smarter public and private investment in the economy including creating a highly-skilled workforce and;
- promoting free and open markets.
To create growth Ministers are determined to have a smarter balance of public and private investment in the economy, and creating an enterprise culture where everyone with talent is inspired to turn ideas into successful enterprises. Getting rid of unnecessary barriers that can stifle growth, is judged to be key.
In the current challenging economic circumstances the Government needs to target the areas of spend that have the greatest impact. Dr Cable wants to ensure that what the public sector does spend encourages increased private sector investment.
That means a redefinition of the relationship between state and society. BIS will concentrate on creating incentives, encouraging the entrepreneurial spirit and empowering people to take ownership of their own futures.
Finally, he argues, it is a shared challenge across Government to create a more sophisticated approach that directs public spending at those areas where they can have the greatest impact on growth and takes wider account to ensure that policy protects and supports the business environment.