CBI urges more expansive finance aid to salvage business growth

The government should help target companies issue bonds to drive investment according to the CBI's Future Champions report. These should be bought out of the public purse to kick start demand, the CBI recommended. Other CBI proposed growth boosting measures include a Corporate Venturing Incentive, which would encourage large firms to invest in smaller operators. Entrepreneurs Relief should also be revamped to incentivise longer term investments and the scope for R&D tax credits extended, the CBI added. The support measures were vital to stimulating growth among medium sized businesses who were feeling the pinch of restricted bank lending, the CBI claimed. John Cridland, CBI director general said: "We should be championing, nurturing and encouraging our medium-sized firms so that more of them grow and create jobs. For too long these companies, which could inject tens of billions of pounds into our economy, have fallen under the radar of policymakers." The UK must create its own version of Germany's Mittelstand- a group of cutting edge companies who focus on export, growth and innovation, the CBI said. The scheme will help plug a shortfall in wealth created by medium firms in the UK compared to those in France and Germany according to Cridland. He added: "These future champions will help the UK weather unexpected economic shocks, and act as an engine for growth." To download the Future Champions report click the link below: