Member Article

The spending review: getting business people on board

As the department for business takes a 6% cut, there is something a little off key about George Osborne waxing lyrical about great businesses holding up the economy. Lawrence Jones, entrepreneur and CEO of internet hosting company UKFast, is just one of the businesspeople who have been left underwhelmed by the Chancellor’s review.

“There has to be a fundamental change in how the government does business,” observes Jones. “Companies make money in Britain and then take it away from the country. If it were up to me, I would charge everyone a flat rate of a few percent of their entire turnover and remove all allowances so that companies pay as they grow, in proportion to their turnover.”

Jones has a point here; there is a large amount of revenue being made that is then being stripped from us. The presence of business experts in the Cabinet, entrepreneurs and experts with track records in managing large businesses would be beneficial if they were able to advise the Government and negotiate more effectively. “In Thatcher’s day, there were ex-business people in the Cabinet,” Jones adds. “You can’t put someone with no commercial expertise in charge of your cheque book. You wouldn’t give your credit card to a child in Toys R Us and expect them to be prudent with it.”

Of the decision to cut progression pay, Jones was clear. “This will be yet another blow to teachers and that’s wrong. Teachers are the people who will reignite the economy by inspiring and developing our young people. We can all remember our favourite teacher; the one who turned a potentially drab subject into something enlightening. It’s great that the education funding has increased but why hit teachers with the loss of progression pay?”

Extending his argument to encompass the recent debate on education and examinations, Jones added: “There is too much bureaucracy in teaching now. Passionate, excitable teachers who want children to grow and develop are made to worry more about complying with rules and regulations. Add to that another cut like this and we risk losing some of those incredible teachers to other professions, leaving less academic young people who were in need of that inspiration to fall by the wayside. “

There were some positives to the review, however. As an entrepreneur, Jones was in agreement with one area of the spending review. The decision to introduce a seven day waiting period before people can claim benefits in order to encourage them to spent the time hunting for a job has been welcomed by the businessman, as has the requirement for claimants to attend weekly meetings at the Job Centre. “I have to say, I’m in agreement with these decisions,” Jones explains. “The money is still being given to job seekers but these measures help to put them in the right mind set for getting a job rather than resigning themselves to just not having one.”

Despite the review today, Jones is very positive about the future. “It’s not all doom and gloom,” he explains. “There are still some sectors doing really well; we just need to concentrate on why some areas are doing well and apply them to those that are struggling. We’re still great, Britain!”

This was posted in Bdaily's Members' News section by Lawrence Jones .