CBI chief says coalition has no vision for economic growth

Sir Richard Lambert, who is serving his last week as director-general of the CBI, also accused the Tory-Liberal Democrat coalition of introducing anti-business measures for political reasons.

His comments were echoed last night by CBI Scotland director Iain McMillan and taken up by Labour as confirmation the coalition has no plans to encourage the economy to grow.

Sir Richard said he agreed with Chancellor George Osborne's "ruthless" approach to the public sector and cutting the deficit. However, in his last major speech after four and a half years in the job, he said the government had not been so consistent and focused on its plans for economic growth.

"It's failed so far to articulate in big picture terms its vision of what the UK economy might become under its stewardship," he said. "And it's taken a series of policy initiatives for political reasons, apparently careless of the damage they might do to business and to job creation."

Sir Richard said ministers were yet to set out a vision of what a successful, growing economy would look like, and he went on: "The growth white paper that was expected last autumn never materialised, and the impression was given that there simply weren't enough good ideas around to justify such a publication."

He said the Department for Business, Innovation and Skills had been "understandably preoccupied" with the "dramas" of higher education in recent months. He added: "Perhaps it is time for a hard look at the role of the Department of Business. We need a department that is seriously knowledgeable about everyday business needs; less of a talking shop, more of an action-oriented growth champion."

Mr McMillan said that he "fully agreed" with Sir Richard's comments. He went on: "The Conservative Party, as the senior partner in this coalition, still needs to set out its agenda for growth and show how it intends to make the UK an entrepreneurial place to do business."

But the government dismissed the comments, arguing that they were what would be expected from the business lobby.

Prime Minister David Cameron's spokesman said: "The government has made no apology about the fact that the deficit has to be addressed.

"We are also looking across the board at what more we can do to promote growth in the economy. There is a growth review under way and there will be more announcements to come in that area in the coming months."

But Labour argued that Sir Richard's comments highlighted the problems with the current economic strategy.

Shadow chancellor Ed Balls said: "These are damning criticisms from such a respected figure in the business world. As Sir Richard says, the Conservative-led government has no plan for growth and has taken decisions for political reasons, regardless of the consequences for job creation and business."Len McCluskey, the new leader of the Unite trade union, said: "It's not often that Unite and the CBI find common ground in criticising the government. Sir Richard Lambert's views are a major wake-up call for David Cameron and George Osborne - the medicine they're feeding the patient will kill, not cure."

While the coalition has mapped out a genteel reduction in Corporation Tax over the next four years, this barely begins to address the urgent need for more help now, particularly for small and medium-sized firms. Page 30