Gordon Brown: a Chancellor in a hurry

Brown Commits Labour To Innovation

The Chancellor, Gordon Brown, has announced the creation of a new Treasury unit to foster innovation and entrepreneurship.

Mr Brown unveiled his second major policy iniaitive of the day while speaking to the Confederation of British Industry. The Chancellor vowed that the Government will take a long-term approach to the economy and appealed to British industry to play its part in the nation's attempt to launch a new drive for "dynamism and adaptability".

In his first speech to the CBI the Chancellor dispensed with convention and declined to wear the traditional penguin suit. Mr Brown stressed that long-term vision was more important now than ever before.

"This is as true for governments as it is for business. Too often in the past, British business has been let down by the short-termism of governments. This Government will match the long-term commitments British industry makes to long-term British success." he said.

"Under this Government, there will be no unsustainable dashes for growth, no out-of-control booms, no risk-taking with inflation, no quick fixes and no short-term manipulation of the economy for political ends. Our commitment is to the long term."

The Chancellor also explained why he had called in the National Audit Office to challenge the current basis of forecasts of the public finances. He said he was seeking to take action to enhance the credibility of the public finances.

"There will be no more hiding behind obscure forecasting assumptions," he said. "We will not leave ourselves open to accusations of accounting tricks, dubious figures or rigging of the rules.

"I believe not only in sound public finance but in honesty and openness in public finance. It is time to rebuild public trust about the management and use of public money," the Chancellor said.

Mr Brown repeated his pre-election pledge to build a future British economy "not on the shifting sands of boom and bust but on the bedrock of prudent and wise economic management for the long term".

But he added: "Stability for the long term needs to be matched, in my view, by a new drive for dynamism and adaptability in industry, and by a new approach from Government to wealth creation, employment and welfare. And we need to revive in all our people those qualities that throughout history have made Britain great."

On Europe, the Chancellor said he wanted to put the Government's position beyond doubt "We are in for the long term; we are in to stay. And it is in Britain's essential interests that we now play a leading role in shaping Europe's future.

Speaking for the CBI, the organisation's President Sir Colin Marshall said the business group was committed to a close working partnership with the Government of a kind not possible with previous Labour administrations.

But he stressed there were some policy areas which the CBI was "uneasy" about, including the Social Chapter, the windfall levy and the minimum wage.

"Not everything in the New Labour garden appears rosy to us. But there is the distinct prospect of working with ministers and their officials to ensure that policies we presently view with caution emerge as legislation which does not harm Britain's commercial and industrial competitiveness."

Sir Colin, chairman of British Airways, said he was encouraged by what had happened on Europe so far under the Labour Government, saying there had been a "fresh start".