CBI boss warns over uncertainty

http://news.bbc.co.uk/go/rss/-/1/hi/business/6223773.stm

Version 0 of 1.

New CBI president Martin Broughton has warned that the departure of Tony Blair and the Conservatives' resurgence will cause uncertainty for business in 2007.

Political changes will generate new opportunities for companies, said Mr Broughton, who is also chairman of BA.

But there will be uncertainty as business tries to plan "amid the shifting political sands", he added.

Reforms "vital to UK competitiveness" such as planning law changes must not be derailed by politicians, he said.

Competitiveness

Marking his first working day in his new role, Mr Broughton called for unnecessary regulation to be cut.

And he said: "The relationship between business and politicians is critical as the coming year sees legislation vital to UK competitiveness - ranging from skills to energy security and the planning system - coming before Parliament.

"This must not be derailed by politicians in pursuit of extra votes by taking a sideswipe at business, however unwitting."

Mr Broughton also tackled the issue of pensions, saying many firms running good schemes were being put under unacceptable pressure by excessive regulation. And he said governments should "back market-driven mechanisms" such as carbon trading to combat climate change.