CBI chief calls for less talk, more action from Department for Business

The Department for Business must take the lead on introducing real reforms which make life easier for small business owners, the outgoing head of the Confederation of British Industry (CBI) has said.

Giving his last major speech as the organisation's director-general, Sir Richard Lambert said while ministers have come up with "some interesting ideas" for improving the lot of entrepreneurs, very little has actually happened.

"Perhaps it's time...for a hard look at the role of the Department for Business," he claimed.

"Understandably enough, it's been preoccupied in recent months with the dramas of the higher education system. But we need a department that is seriously knowledgeable about – and very closely engaged in – everyday business needs. Less of a talking shop, more of an action-oriented growth champion."

Sir Richard, who steps down on Friday after four and half years leading the CBI, said although he supported the government's "single minded" and "ruthless" approach to spending cuts, it has failed to communicate its vision for growing the UK economy.

"Rather than a big picture of the kind of economic eco-system that the government wants to champion," he commented, "we are left with a few rather vague ideas about the scope for supporting a number of predictable sectors, and the promise that more ideas will be forthcoming at the time of the spring budget."

On access to finance, Sir Richard said small businesses were overly dependent on a small number of banks and policy should be directed at widening the range of choice. 

"It's also going to be vital to ensure that changes in the structure of the banking system are done in a measured and predictable way over a sensible period of time," he said. "SMEs will pay the price if banks are forced to rebuild their balance sheets in too much of a hurry."

Sir Richard will be succeeded as CBI director-general by his current deputy, John Cridland.