BVCA urges action on the economy

The Britsh Venture Capital Association has warned government that Europe is facing an ‘economic crossroads’, in a speech given by Michael Queen at the BVCA Chairman’s Dinner on 25th March. He said that the start of this century could prove to be ‘a period of significant relative decline for Europe’, but also stated that Europe had the potential to ‘compete and outperform’ given the right political leadership.

The BVCA Chairman outlined his four criteria of successful economies - people, productivity, fair taxation and an efficient public sector - and highlighted the impact of forthcoming demographic changes on economic growth within the US and Europe. The US benefits from a rapidly increasing population, the influx of economic migrants from South America and the immigration of the brightest and best from around the world. In contrast, Europe’s population is set to decline and age, increasing the demand for pensions and healthcare, and slowing economic growth.

Using the four criteria, Queen outlined the changes he believed were necessary to maintain and strengthen Britain’s position in the world economy. These included encouraging substantial net inward immigration of educated, hardworking people, overcoming cultural barriers to improve levels of business education, improving productivity via significant investment, especially within private equity, creating an attractive tax and regulatory environment and bringing a business approach to the management of public services.

He praised steps taken by the UK Government in many areas, but called on it now to make brave, tough decisions to ensure Britain takes a lead within Europe: ‘the UK must set its stall out as the the place to do business in Europe,’ he said.

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