Blair courts business vote

by BBC News Online's Bob Trevelyan at the BCC conference in London

The Prime Minister, Tony Blair, has stepped up the battle for the business vote, saying the government will work hard to eliminate unnecessary regulation.

It should be a given that whoever's in power wants to work with business

Tony Blair

"We are listening to what people are saying... and are committed to a good and sensible relationship with business," he said.

He said he thought the government had already made "quite a difference" in cutting down on red tape.

He made the comments in an unscheduled presentation to the British Chambers of Commerce (BCC) annual conference in London.

On Tuesday, Conservative party leader William Hague told the conference a Tory government would free business from red tape while Liberal Democrat leader Charles Kennedy put joining the euro at the top of his party's agenda for business.

The UK's three main business groups had called on political leaders to promote a stronger enterprise culture through action on skills, transport, red tape, taxes and e-business.

Huge problem

Mr Blair said his government's achievement in bringing about greater economic stability gave business "the best chance in a long time" to plan ahead.

He said he wanted to put schools on a footing with the UK's major competitors and ensure the existing workforce had better skills.

"We have a huge problem with the skills and ability of our adult workforce," he said.

He also said investment was coming through in transport with the £180bn, 10-year plan - "it may seem a long way off now but there is absolutely no alternative" - and in science and technology.

Big change

On Europe, Mr Blair said he had detected gradual shift towards more action on economic reform by other European countries.

"I think that is a big change," he said.

"We've got to make sure that focus... is deepened."

He said he hoped to get cross-party support for a parliamentary bill that would get rid of some out-of-date primary legislation "without having to go back through the primary legislation route".

He said he didn't think issues such as the minimum wage were business's "real problem" and the government would focus on addressing "the practical problems you face setting up and running a business".

On taxes, Mr Blair declined to comment on a question as to whether consultations on the supplementary business rate would lead to its abolition but said an announcement would be made "shortly".

Newspaper reports have suggested that the government has abandoned plans to allow local councils to increase the business rate - which is now set nationally at a uniform level.

'A given'

In closing remarks, Mr Blair highlighted how far the Labour party has changed over the past 15 years.

"It should be a given that whoever's in power wants to work with business.

"I think that's a very positive thing."

On Tuesday, BCC director general Chris Humphries had been 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 had shared a platform.

The conference is expected to be the last major business event before the general election.