When I started out as an entrepreneur, I asked for only three things from government. I wanted predictability, fair taxation and a system that rewarded hard work, says John Caudwell
As someone who built Phones 4u from a one man band into a multi-billion-pound business, I know that every large company begins as a small one. I also know how essential stability, clear incentives and rational decision making are for helping the next generation of entrepreneurs to thrive.
Despite some positive moments, last month’s Budget highlighted a deeper problem in Britain. We are still rearranging deckchairs on the Titanic rather than building the QE2. This country is crying out for growth and we will never achieve it unless government understands what motivates the people who create jobs and investment. In that context, the Budget felt like another lost opportunity.
Small firms today need a government that approaches the economy with the same sense of direction. Instead, they face confusion. We see a new sugar tax on milkshakes with no comprehensive strategy for reducing the unhealthy foods that contribute to the NHS crisis. We see uncertainty over electric vehicle incentives and even punitive taxation at the very moment when we are trying to encourage adoption. We see the Employment Rights Bill that will make employers more cautious, discourage hiring, increase costs and hand more power to unions. An employment rights agenda that frightens businesses away from hiring helps no one. If I were building Phones 4u under these proposals, I would hesitate before taking on that next employee. Even more importantly, it discourages inward investment!
This leads to the broader question of where is the serious plan to improve productivity and cut waste. Any responsible businessperson knows that you cannot simply raise prices or increase taxes every time you face financial pressure. You must improve efficiency, innovate and eliminate unnecessary costs. Government must do the same. Reducing public spending by just one per cent through genuine efficiency, better accountability and the use of AI and modern technology would save around £12bn. Yet I see no determined effort to do this. Instead, we weigh entrepreneurs down with further burdens and push high value individuals abroad. That is the opposite of a credible growth strategy.
A crucial piece is still missing. Britain needs a genuine inward investment engine. My proposal developed in my “Caudwell Strong Britain” report is straightforward.
A dedicated government unit would identify global companies that might relocate or expand into the UK. A team of 20 seasoned business leaders, people who understand how to negotiate, would ask those companies what they need to bring their jobs, their technology and their intellectual property to Britain. Government would then negotiate sensible packages, such as reduced corporation tax linked to job creation and average salaries. The result would be high value jobs, new industries and an expanded tax base at no upfront cost to the taxpayer. It astonishes me that no government, Conservative or Labour, has ever pursued an idea like this with intent. We could be leading in environmental technology, artificial intelligence, biotech and advanced manufacturing. These are forward facing sectors, with potential for extraordinary growth, Instead, our headline measures are a new tax for milkshakes.
Remember what works
We need to remember what works. When I started out as an entrepreneur, I asked for only three things from government. I wanted predictability, fair taxation and a system that rewarded hard work. Britain delivered those fundamentals and I built a company that employed over 10,000 people in the United Kingdom. Today’s small businesses want the same. They do not want politics that swings from one extreme to another. They do not want to fear that long term decisions will be undermined halfway through their planning cycle. They do not want to be punished for success. They want a country that rewards endeavour, encourages innovation and welcomes investment with confidence.
Britain can still be the best place in the world to build a business. I do not support political parties. I support policies. At last year’s election I backed Labour because it was the only viable option and because I hoped that by engaging constructively I could help shape the right decisions. Goodwill, however, is not infinite. If the government wants the continued support of the business community, it must stop chasing headlines and start chasing growth.
It’s time to remember what made Britain strong and to rediscover the spirit that once made this country the natural home for enterprise. It is time to act like a nation determined to grow again.