On the first anniversary of the coalition government, Osborne said: "Not enough has been made of the upside of reducing public debt. We have to be realistic where we're coming from and optimistic where we're going. The recovery is weighing down on growth, but I believe we've brought much more stability," he added, quoting the reduction in corporation tax, the 400,000 new public sector jobs being created and the fact business investment is now up 11%. "I say just look what's happened in Greece, Ireland and Portugal, in which nothing has happened."
But Ed Balls rubbished these claims, and in his speech mocked the chancellor by saying: "I can't think of a single time in history where a sitting chancellor has resorted to comparing us with those three European countries as an indication of our growth," he quipped. "Lending to business has actually gone down and rigid, rule-based regulation is preventing businesses from employing more people," he added, on the day the Bank of England revised Britain's growth forecasts, and predicted rising inflation.
Balls said: "My concern is that if the economy is not growing more, and unemployment continues to rise, it's hard to grow confidence and get the deficit down."
Balls also disputed that business was in harmony with the Government about what needs to be done to encourage more investment in people and skills. "I've never known a time where the political world and the business world have been so far apart for so long," he criticised.
Osborne announced it was still his intention to "have the most competitive tax system of the G20 countries," and said he will increase research and development tax credits. "Since last month, it's been cheaper for firms to employ someone on £21,500 or less," he added. "I'm also able to announce that next week we'll be publishing details of how business can access equity finance."
Osborne said: "The forces of stagnation [the opposition and the trade unions] will try to stand in the way of the forces of enterprise, but this government has the courage to answer the tough questions facing Britain. We're starting the process of reviewing all employment law - including TUPE and consultation for collective redundancies - which will make it easier for businesses to plan their people decisions." He told delegates: "Don't be passive observers, and stuck in the sidelines. Get stuck in."
Osborne's announcement to review rules governing levels of compensation for workplace discrimination and how long firms have to consult staff over job losses has been welcomed by the HR community, with experts pleased the Government has apparently listened to the needs of employers.
Caroline Carter, head of the employment practice at Ashurst, said: "The Government's announcement is a welcome one for employers, as it has targeted some of the most problematic and key areas of employment law.
"Placing a cap on compensation for discrimination claims (as there is for unfair dismissal claims) will be a useful risk management step for employers, and give them more certainty in judging their financial exposure. The collective redundancy timetable is also unnecessarily arbitrary, and there is significant uncertainty about when it is triggered, both of which add unwanted pressures to businesses who are already in real difficulty.
"Finally, the TUPE Regulations have been "gold-plated" ever since their amendment in 2006, and it would be of great benefit to multinational companies doing business in the UK if there was a uniform approach across Europe."
