Brown seeks lead in Europe

Gordon Brown (left) with CBI president Sir Iain Vallance

Chancellor Gordon Brown has urged business chiefs to rally behind a campaign to raise Britain's profile in Europe.

In a speech to industry leaders, Mr Brown restated his support for Britain adopting the euro when it was in the "national economic interest".

The Labour Party of the 1980s was wrong, and was irresponsible... to ignore the central importance of Europe

Gordon Brown

And he called on businesses to help Britain lead Europe on a campaign of reforming labour markets, and opening up markets such as energy, telecoms and air transport to greater competition.

"We will work with you to push open the door to greater access to markets in Europe," he said.

"I believe as Britain we should take the lead in Europe. We should build an alliance for reform."

Golden opportunity

The speech, made to delegates at a Confederation of British Industry dinner, was seen as a key opportunity for Labour to boost its business credentials.

While the event is normally addressed by a Conservative spokesman, three party leaders refused invitations to speak, allowing Mr Brown to address the dinner unopposed.

His speech will be interpreted as distancing Labour further from the anti-European feeling raised on Tuesday by former Conservative leader Lady Thatcher.

Lady Thatcher told party members she would never support the adoption of the single European currency in favour of the pound.

Mr Brown said it was wrong to rule out adopting the euro "as a matter of dogma, even if it was in Britain's economic interest".

"Advocating isolation or renegotiation or withdrawal its not only anti-European, it is anti-business," he added.

Old Labour

He also distanced himself from his own party's anti-European stance of 20 years ago.

"The Labour Party of the 1980s was wrong, and was irresponsible... to ignore the central importance of Europe to our prosperity and employment."

Some 3 million British jobs now depended on trade with Europe, Mr Brown said.

While Britain also has close links with North America, it should see them as an opportunity, rather than an alternative to European ties.

"I know that American companies invest here not just because it is Britain, but because Britain is in Europe.

"Far from Americans seeing Britain better off separated from Europe, they take the view, rightly, that the more influence Britain has in Berlin and Paris, the more influence we will have in Washington."

Tax cuts

Mr Brown also confirmed his commitment to supporting entrepreneurs, through measures such as tax cuts for small and start-up firms.

"Widening and deepening a British enterprise culture will be the greatest economic challenge of the coming decade," he said.

And he warned business leaders that, despite their efforts, productivity in UK firms is "still too low".

"I believe there should be shared mission... over the next decade that we achieve the fastest rise of productivity, and thus prosperity, of our main competitor countries."

Mr Brown made only a brief mention of a drive, which CBI leaders have opposed, to enhance the power of industry regulators.

"We will insist that regulators show how regulated industries are subject to competition," he said.