Miles Templeman - Director - General

I am delighted to be given the opportunity to introduce the latest edition of Public Service Review for the Department of Trade and Industry. I firmly believe that, at the beginning of the 21st Century, business and enterprise have never mattered more. The UK – and Europe for that matter – currently face any number of socio-economic challenges. These include the rise of powerful new economies, such as China and India; rapid advances in technology; and demographic shifts. None of these challenges are, of course, new. Global competition, technological change and population movements are age old phenomena. The question is, how do we face up to them right now?

Well, British industry can play its part by being allowed to do what it does best – create jobs, disperse wealth, invent new products and, through taxation, pay for public services. To sustain economic growth and, hence, our current standard of living, business must be allowed to flourish. Yet, the Government’s commitment to enterprise – and particularly to that backbone of the economy, SMEs – is not always as steadfast as perhaps it could be.

Whilst the Institute of Directors (IoD) has welcomed many initiatives from government, big challenges remain. Business worries that taxes may need to rise further, in order to finance spending commitments. The tax system itself grows ever more complex, when it screams out for simplification. There is too much red tape and too little reform of monopoly public services. Long delays in transport policy and the planning system add to the burden on business. To cap it all, the pension system needs urgent and fundamental overhaul.

In fairness, many of these problems have been building over decades but they can’t wait decades for a solution. With the pace of change increasing exponentially, we need to see a real sense of urgency and political will.

It is becoming increasingly clear that the future for UK business has to lie in high value added products and services, competing on innovation, design, flair, quality and speed to market. This needs many things: the right economic environment; a highly skilled and flexible workforce; an education system that equips people for the real needs and opportunities in life; a regulatory environment that protects the individual but doesn’t stifle enterprise; investment at all levels from start-up to multinational; and much more of an enterprise culture within our businesses and within society.

Government, business and unions should be working together to achieve some of these goals for the benefit of all.