New business minister's first words on regulation and private equity
New business secretary John Hutton speaks to the Financial Times this morning and tells how Gordon Brown is planning to undertake a 'serious redesign' of the government’s links with business to 'woo the corporate vote'.
Before you ask, yes he did have a decade to do this as chancellor to mixed effect. But there is a greater political imperative to do so now. A general election isn't too far away and it's seen as an area where Labour can hurt the Tories even if the party's ambition to become the natural party of business will not happen overnight.
Hutton also seeks to tread an interesting line on private equity. On the one hand he says: 'The public’s got a legitimate interest in all of this, particularly around the tax issues ... The climate changes [for business sectors] and you’ve got to keep ahead of the public debate or at least try to match it.'
On the other, he argues: 'It’s incredibly important for the British economy that private equity houses add value ... and they’ve been doing that, been very successful.'
It's hard to argue with either of those statements. What will be far more difficult will be carving out a tax policy that does justice to both. Not doing anything after the Treasury review is completed will reveal Hutton's first statement to be no more than hot air. Going too far will undermine the latter.
Of his new Department for Business, Enterprise and Regulatory Reform (basically an unscientific DTI) Hutton says: 'This is not
a rebranding. It’s a serious attempt to redesign across government how we work
with business.'
Apropos of very little I remember an Accountancy Age headline some years
back branding the DTI the Department of Timidity and Inaction so let's hope the
ungainly sounding DBERR is more effective.
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