Hague: We'll free business

BCC conference: last gathering before the election is called?

The Conservative party leader William Hague on Tuesday said a Tory government would reduce the burden of tax and regulation on business.

Speaking on the opening day of the British Chambers of Commerce (BCC) conference in London, he said he wanted to "set business free" from government.

"At the moment in this country we are going in the wrong direction.

"We are increasing tax and regulation."

Thankless task

Mr Hague said it was possible to reduce the burden of regulation but criticised government measures that included the setting up of taskforces.

Concerning electronic business, he said the government's e-envoy had "a terribly thankless task".

Mr Hague said he had talked on these issues with Jeb Bush, governor of the US state of Florida.

"They've got less regulation and they've got sunshine," he said.

The Conservatives have already called for a reduction in business taxation, including the abolition of the climate change levy and more help for small businesses.

The UK's three main business groups had earlier called on political leaders to promote a stronger enterprise culture.

The call came on the opening day of the British Chambers of Commerce (BCC) annual conference at which the BCC formally launched a manifesto setting out what it believes should be the business agenda of the next government.

Crippling problems

BCC director general Chris Humphries said five issues headed the agenda: Skills, transport, red tape, tax and e-business.

He said the government needed to take action to ensure the right skills were available in the right place while 30 years of under investment in transport had created "crippling problems" for business.

Mr Humphries was joined in a presentation by Confederation of British Industry boss Digby Jones and George Cox from the Institute of Directors - the first time leaders of the three groups have shared a platform.

Radical plans

Answering an earlier call to commit himself to the government's £180bn, 10-year transport plan, Mr Hague said the Tories' plans for transport were "the same" although he said the government had only committed itself to the first three years of that plan.

He said any savings in public spending made by a Tory government would not be in transport.

"It's vital to provide that business infrastructure," he said.

Answering a call for government to do more on ensuring young people had the right skills for the workplace, he said his party's general election manifesto would reserve its "most radical plans" for education.

However, he elaborated on this only by saying this would involve freeing schools from bureaucracy.

"This should be the most attractive country in Europe in which to do business," he said.

Tax advantage eroded

Mr Jones had earlier said he was "very optimistic about the future of business Britain" but that business needed more freedom.

"All regulation distracts from the real business of doing business," he said.

Mr Cox said that although British businesses had a slight advantage on tax over their European competitors this was being eroded.

He said enterprise needed to be "valued and understood" but that this was a "massive task".

"We're not getting across to young people what business is really about."

The conference is expected to be the last major business event before the general election and has attracted speakers from the three main parties.

Besides Mr Hague, these include Trade & Industry Secretary Stephen Byers, Home Secretary Jack Straw and Liberal Democrat leader Charles Kennedy.

The Prime Minister, Tony Blair, is rumoured to be considering making an impromptu appearance at the two-day meet.