John Cridland, CBI Director General, Warns Economy In 'Last Chance Saloon'

John Cridland Economic Warning

First Posted: 18/11/11 06:58 GMT Updated: 18/11/11 06:58 GMT   PA

The leader of the UK's biggest business group has warned that the economy was in the "last chance saloon" unless the decline in jobs and growth is reversed.

John Cridland, director general of the CBI, said Government action was needed to boost investment, help firms trade overseas and improve the business environment.

He said he will be disappointed if Chancellor George Osborne does not respond to a series of CBI policy papers when he unveils his autumn statement on November 29. Firms wanted to see infrastructure improved, including more toll roads, which Mr Cridland said would help unlock spending from private firms.

Speaking ahead of next week's CBI national conference in London, his first as director general, Mr Cridland said the Government had scored an "own goal" with plans to introduce a carbon floor price, which he warned could see firms switch production overseas.

Despite the criticism, Mr Cridland said the coalition had worked for business because firms agreed the most important priority was to press ahead with the deficit reduction, as well as reducing business taxes.

Mr Cridland, who was previously the deputy director general, said the CBI has enjoyed good access to ministers under the previous Labour governments, adding that he was "particularly pleased" with the present dialogue with the Treasury.

"That has not always been the case in past years," he said in an interview with the Press Association. He denied there was any significance to the fact that no-one from Labour's front bench has been invited to address the conference, saying the event this year was focused on business issues.

The President of Turkey will address delegates in a sign of Mr Cridland's drive to encourage UK firms to trade more with emerging and developing countries.

After less than a year in the top post, Mr Cridland said he was already focusing on major issues for the coming 12 months, including education, Europe and aviation. He will shift the focus from secondary to primary schools, where he believes efforts should begin to prepare youngsters for work, and said the UK should be planning to deal with the "new Europe" which will emerge when the eurozone crisis is over.

A Treasury spokesman said: "The Government is using every lever at its disposal to protect the UK economy and make sure that it remains a relative safe haven in the face of international instability and uncertainty. We are also tackling structural issues that will create the right conditions in the long term needed for strong and sustainable growth."

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The leader of the UK's biggest business group has warned that the economy was in the "last chance saloon" unless the decline in jobs and growth is reversed. John Cridland, director general of the C...
The leader of the UK's biggest business group has warned that the economy was in the "last chance saloon" unless the decline in jobs and growth is reversed. John Cridland, director general of the C...
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02:07 PM on 11/20/2011
Two points on this:
1. CBI represents the bankers as well which are the people who got us into this mess
2. Wasn't there a letter just before the election from a large number of British top businessmen saying that the old labour party manifesto was the wrong way to go and that the Tories had all the right ideas?
Why should we listen to the CBI??
10:00 PM on 11/19/2011
This is where I fall out with capitalism slightly - why the fixation with growth for a successful economy? This was ok when there were 2 or 3 billion people on the planet. Now that there are an estimated 7 billion of us the sustainability issue kinda conflicts with continuing growth.

Any thoughts on the alternative?
08:54 PM on 11/19/2011
Too many people and too few resources......

The ever growing world population is not sustainable and only leads to more poverty, suffering and despair.
06:28 PM on 11/18/2011
Do what Brazil did, go all out at investment in infrastructure and jobs, speculate to accumulate, create jobs in mending that which has become broken; roads, rail, homes, use those on the dole to make it happen, it cuts benefit costs, the improvements come cheap...

Lastly, make the Banks pay out on the money they have taken from the tax payers, stop the sale of Northern Rock, why should we allow a Cameron crony to make millions, we can wait for the full return..

And some additional perks, let there be a an interest holiday for everyone, all interest to be dropped to 1.5% on every mortgage.

On investment that creates jobs a single rate of 1.5%, all other loans a 3% charge...that will stimulate investment in business rather than Banks as only real productivity will generate real profit.

Get rid of Chancellor Osborne who is so feeble he cannot see the problems he is creating in the middle to long term with his lack of understanding of how the economy should work. He has only looked at what the IMF want,not what can make a difference,he should look at the Countries who have made this massive turnaround by putting a pair of fingers up at the IMF and investing in their people and their country.
06:14 PM on 11/18/2011
ROAD TOLLS WE WERE TOLD THAT WHEN ROAD TAX WAS INTRODUCED THIS WAS TO KEEP THE UP KEEP OF OUR ROADS NOW THE FAT CATS WANT TO PRIVATISE ROADS TO MAKE THE MOTORIST PAY MORE BUT WOULD THET STOP ROAD TAX NOPE AS ITS A BIG FAT CASHCOW FOR THEM ALSO REMBER IF IT IS INTRODUCED IT WILL COST MORE FOR ROAD TRANSPORTATION SO FOOD WILL RISE TO ABSORB THIS COST SO WE ALL PAY MORE TO HELP THE RICH B---- GET RICHER WELCOME TO THE CONSEVATIVE STATE FOLKS
This comment has been removed.
05:47 PM on 11/18/2011
In all the years that I've dragged myself around this good earth I have never known a time where we are actually out of "The Last Chance Saloon"
We are sometimes told about the good times, but that is usually just after things have gone belly-up and we are told that the good times are over. This is always refreshing to learn as most of us were never aware of the "good times" anyway!
05:14 PM on 11/18/2011
Cridland is only concerned for himself and the one's that pay his wedge, but heres an opener most of his members are not in the 1% so dav and osbones don't give a rats for what the CBI think or says.
05:06 PM on 11/18/2011
How on earth are we going to create any more jobs, there are more redundancies than job creation, first when the tories were in office the got rid of apprentiships,and previous governments allowing employment to go overseas, governments giving tenders to foreign companies instead of keeping our own companies in work, and automation and technology have done away with more jobs than anything, jobs that have been lost will never return again, but the fact remains that greed has cost every one dear, and the culprits will never become to account for their actions.
05:04 PM on 11/18/2011
Never mind, the rest of Europe will bail us out........................
04:00 PM on 11/18/2011
If we stopped paying billions of pounds saving the euro that no englishman wants. Stopped wasting billions in questionable wars we cant afford and the ones who can, don't! Stopped spending billions in foreign aid to countries now better off than we are or want to destroy us regardless, or their tyrant leaders simply syphon off the money for more limousines, swiss bank accounts, yachts etc., and stopped the massively inflated wages being paid to quangos and ridiculous government and council directors and non required departments. Also stopped uncontrolled immigation providing jobs for foreigners who send the money back home, get any free benefits they like without ever having paid in or intending to contribute to the system that provided such benefits. WE MIGHT ACTUALLY BE RATHER WELL OFF GIVEN THE PRICE THAT YOU AND I ARE PAYING FOR ALL OF THIS NONSENSE!
03:30 PM on 11/18/2011
we could employ 50,000 people without a problem and send them to austrailia to train as customs officers as they dont let anyone into the country that has no job to go to unless they can prove they have enough cash to keep themselves for 2 years .....................
the other option is to keep the door open and invite more people here and give them everything they desire and squeese the tax payers to death ..................
have you got any ideas mr cameron or are you to busy in europe ........................??????????????
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03:15 PM on 11/18/2011
Long after this crisis Britain will still be here. I dislike these tactics to terrorise and stampede people into their way of thinking
photo
carneliancrystal
Do I believe all the propaganda of course I do
02:40 PM on 11/18/2011
Does this last chance saloon have a happy hour?
06:46 PM on 11/20/2011
we should be so lucky
02:13 PM on 11/18/2011
Nothing will change whilst the goverment is a slave to the finacial markets which continually take money out of the ecconamy as they are fake and overinflate their prices and have no substance, those who make a living in the finacial markets make a profit remove it and the put it into things of substance ie houses, land etc and whilst this continues 90% of the population will continue to pick up the tab. when 40% of GDP goes to 10% of the population the rest of us stand no chance the markets are crippling most of us. Notice every news story about the ecconomy, strikes, jobs and similar news item always mention the markets and their trends when did they gain so much control