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Brown outlines 'long-term' plans Brown outlines 'long-term' plans
(about 1 hour later)
Gordon Brown has sought to regain the political initiative by saying he is taking the "long-term" decisions needed so Britain can meet future challenges. Gordon Brown has sought to regain the political initiative, telling business chiefs he was taking the "long-term" decisions Britain needs for the future.
He told business leaders at the CBI in London he would not "shirk" tough decisions such as expanding Heathrow or building new nuclear power stations. He would not "shirk" decisions like on new runways or building new nuclear power stations, the PM told the CBI.
Mr Brown also hinted at a rethink on capital gains tax changes which have been opposed by many business people. A rethink over capital gains tax was hinted at, as were plans to force more jobseekers to accept training places.
And he promised tougher rules on people on benefits accepting training offers. The Tories called the measures "short term", while the Lib Dems called it an "incoherent view on Britain's future".
Mr Brown's speech, his first to the audience of business leaders since he became prime minister, came after weeks of difficulties. Mr Brown's speech, his first to the audience of business leaders since he became prime minister, followed a series of problems over emergency funding for Northern Rock and the loss of two discs holding personal details of 25 million people.
'Yesterday's policies''Yesterday's policies'
He said that he would not take short-term decisions that would put economic stability at risk at a time when a new global order could bring problems such as the credit crisis. He told the CBI conference in London that he would not take short-term decisions that would put economic stability at risk at a time when a new global order could bring problems such as the credit crisis.
He said Britain had already negotiated several international crises because of its flexibility, and pointed to the decision to keep down public sector pay awards to help control inflation.
The inactive should, wherever possible, be preparing and training to get back into work Gordon Brown
He said Britain must "leave behind the old policies of yesterday" and make new long-term decisions on planning, energy, the environment and education to become a global leader in the 21st Century.He said Britain must "leave behind the old policies of yesterday" and make new long-term decisions on planning, energy, the environment and education to become a global leader in the 21st Century.
The inactive should, wherever possible, be preparing and training to get back into work Gordon Brown
Investment in transport infrastructure must be stepped up, he said, saying every year up to 2017 would see a £20bn investment in transport.Investment in transport infrastructure must be stepped up, he said, saying every year up to 2017 would see a £20bn investment in transport.
The £16bn Crossrail project would be proceeded with and he said the government would not "shirk" the decision on expanding Heathrow, which he said, Britain's prosperity depended on. The £16bn Crossrail project would be proceeded with and he said the government would not "shirk" the decision on expanding Heathrow, upon which he said, Britain's prosperity depended.
'New obligations''New obligations'
Decisions on key national infrastructure projects will be handed to a new independent body and "streamlined", and on energy security, he said a decision on building nuclear power stations would be made early in the New Year.Decisions on key national infrastructure projects will be handed to a new independent body and "streamlined", and on energy security, he said a decision on building nuclear power stations would be made early in the New Year.
He repeated plans to expand the emissions trading scheme and put London at the centre of a global "carbon market".He repeated plans to expand the emissions trading scheme and put London at the centre of a global "carbon market".
It takes real ministerial talent and determination to engineer the first full-scale banking panic since the Victorian age Chris HuhneLib DemsIt takes real ministerial talent and determination to engineer the first full-scale banking panic since the Victorian age Chris HuhneLib Dems
And he said Britain needed "the most far-reaching change in our occupational industrial and employment structures for more than a century" - to help the unemployed get the skills needed to train for work by providing "new incentives and new obligations" on welfare recipients. And he promised tougher rules on people on benefits accepting training offers.
"If the best welfare is no longer the benefits you have today but the skills you gain for tomorrow then the inactive should, wherever possible, be preparing and training to get back into work," he said."If the best welfare is no longer the benefits you have today but the skills you gain for tomorrow then the inactive should, wherever possible, be preparing and training to get back into work," he said.
And, following concerns about the decision to scrap taper relief on Capital Gains Tax, Mr Brown said he would continue to "listen and discuss" business about it. Following concerns about the decision to scrap taper relief on Capital Gains Tax, Mr Brown said he would continue to "listen and discuss" the issue with businesses.
'National disgrace''National disgrace'
At the same conference, the two men vying to be Liberal Democrat leader attacked the government's record. But acting Lib Dem leader Vince Cable said Mr Brown was providing an "incoherent view on Britain's future", saying last week he talked about the need to protect the environment, while he was now talking of airport expansion and a new generation of nuclear power stations.
Nick Clegg told the conference the government was "letting business down" and said there was a "huge skills deficit" and the literacy levels among young people were "a national disgrace" . At the same conference, the two men vying to be Liberal Democrat leader attacked the government's record. Nick Clegg said the government was "letting business down" while Chris Huhne said not a single Treasury team minister had business or markets experience.
Meanwhile Chris Huhne said not a single Treasury team minister had business or markets experience. Study after study shows that the private sector does not deliver good value for money Unison spokeswoman
"It takes real ministerial talent and determination to engineer the first full-scale banking panic since the Victorian age, and to lose not one, but two discs with bank accounts of seven million families is frankly astonishing," he said."It takes real ministerial talent and determination to engineer the first full-scale banking panic since the Victorian age, and to lose not one, but two discs with bank accounts of seven million families is frankly astonishing," he said.
And Mr Brown's statement that there would be a stronger role for private and voluntary firms in helping people move from benefits to work, was criticised by trade unions.
A spokeswoman for Unison said: "Study after study shows that the private sector does not deliver good value for money and walks away from contracts when the going gets tough.
"What we need in the public service is stability, and that comes from investing in the workforce and using their skills and experience to improve delivery."
In an address to the conference on Tuesday, Conservative leader David Cameron is expected to attack the government's proposed changes to Capital Gains Tax as "incompetent".In an address to the conference on Tuesday, Conservative leader David Cameron is expected to attack the government's proposed changes to Capital Gains Tax as "incompetent".
In his pre-Budget report, Chancellor Alastair Darling outlined plans to replace CGT taper relief with a flat 18% rate.In his pre-Budget report, Chancellor Alastair Darling outlined plans to replace CGT taper relief with a flat 18% rate.
Mr Cameron will focus on the role played by Mr Darling, whom the Tories have also singled out for criticism over Northern Rock and the Child Benefit data loss.Mr Cameron will focus on the role played by Mr Darling, whom the Tories have also singled out for criticism over Northern Rock and the Child Benefit data loss.