In an attempt by the government to boost the economy, Business Secretary Vince Cable has pledged to reduce red-tapes and bureaucracy while dealing with small businesses.
However, during an interview with the Financial Times on Friday, Mr. Cable told the newspaper that the government was unable to provide an “all-encompassing plan” to the small business sector to boost the economy since it was hamstrung by the lack of financial resources.
In a meeting with 200 business leaders over dinner in London on Thursday night, Mr. Cable had said that the government can act as a facilitator for small business by creating business ecology conducive for growth such as boosting skills, relax planning laws and highlighting deregulation.
Taking the first step towards deregulation, Mr. Cable announced yesterday that no small firm has to get their accounts independently audited, potentially saving £40 million for 42,000 small businesses.
“I confess to a certain exasperation with commentators and opposition politicians who, for reasons of ignorance, amnesia or mischief, assume away the past and expect that the Government can somehow guarantee an immediate, miraculous return to rapid economic growth through some all-encompassing plan. Developed economic markets cannot be made to grow like the Soviet Union”, said Mr. Cable.
“This is the opening salvo in a government campaign to show that the focus is entirely on growth”, said one official to FT.