CBI calls for economic growth focus

”CBI

The Confederation of British Industry (CBI) is urging Chancellor George Osborne to provide a “relentless focus” on economic growth and job creation when he presents his annual budget later this month.

In a letter to the Chancellor, the business lobby group said action must be taken in order to boost the economic recovery.

Over recent months, many business groups and economists have said the massive spending cuts introduced to deal with the budget deficit could cause the economic recovery to falter.

The Office for National Statistics (ONS) recently revealed the UK economy contracted by 0.6% in the final quarter of 2010.

While the shock contraction was attributed to the severe wintry weather in December, growth is expected to slow even further due to the spending cuts - raising fears of a “double dip recession.”

However, the CBI, which represents almost a quarter of a million companies, supports the Government’s plans to slash public expenditure.

“The Government has been right to stay the course on its fiscal consolidation plans to bring the current budget deficit back to balance by 2015,” according to chief economic adviser Ian McCafferty.

However, the CBI believes a plan is required for growth. Newly appointed CBI Director-General John Cridland said: “We need an all-action budget which boosts exports, investment and jobs.”

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