BCC pledges 'business as usual'

Speakers include Patricia Hewitt, David Blunkett and Ken Clarke

The British Chambers of Commerce, a leading business lobby, has pledged "business as usual" at its annual conference on 22 and 23 April, downplaying the shock departure of its leader earlier this week.

BCC Director General David Lennan - who had been in the job for less than a year - was 'asked to leave' on the afternoon of 18 April after a meeting of the BCC board.

Mr Lennan said he did not know why he had been edged out, and called the timing of the move - which came days before the start of the conference he was due to host - "amazingly bad."

He added that he enjoys the support of many of the leaders of the 100 or so of the UK's regional chambers of commerce.

Budget clash

The incident could inject a further note of acrimony into a conference which already looks set to generate heated exchanges over the government's handling of the economy.

Relations between bosses and ministers were uncharacteristically warm at last year's event, when the government launched a charm offensive aimed at shoring up business support ahead of the 2001 general election.

David Lennan: Edged out on the eve of the BCC conference

Mollified by an unscheduled appearance from Tony Blair, most delegates at last year's conference went away happy, despite signs of a serious economic downturn and widespread dissatisfaction over the government's failure to control the foot and mouth crisis.

While the foot and mouth crisis is now over, and concerns over the UK's economic health are no longer so pressing, this year's get-together is unlikely to be so harmonious.

The conference comes less than a week after Chancellor Gordon Brown's latest Budget, which was greeted with dismay by most employers.

Many company chiefs believe that any business-friendly changes in the Budget were more than offset by plans to raise employers' national insurance contributions, widely condemned as a "tax on employment."

The increase in NI payments is aimed at raising extra cash for the UK's ailing public health and education services.

The BCC said last week the Budget will take business competitiveness "a step backwards."

Crime in the spotlight

Some analysts have also questioned whether parallel increases in employees' NI contributions - a tax in all but name - could cut into consumer spending, delaying a fully-fledged economic recovery.

The BCC, which represents 135,000 British companies across all sectors of the economy, is also planning to take the government to task over the impact of crime on UK businesses.

The lobby is expected to call for a package of measures aimed at protecting businesses from burglary and vandalism, which it believes cost UK companies millions of pounds a year in security costs and higher insurance premiums.

The move comes amid heightened concerns over crime throughout the UK, with figures last week showing a shock rise in street robbery and other violent offences.

Interest rates

Putting the government's case will be Home Secretary David Blunkett, while business issues will be addressed by trade and industry secretary Patricia Hewitt, foreign trade secretary Baroness Symons, and e-commerce minister Douglas Alexander.

Conservative leader Ian Duncan Smith and former chancellor Kenneth Clarke are also due to speak, as is the Liberal Democrats' shadow trade minister Vincent Cable.

Delegates will be listening carefully for hints on the likely direction of interest rates from Mervyn King, deputy governor of the Bank of England.

BBC News Online will be on hand to report all the news and developments.