Branson rejects media-created row over deficit
SIR RICHARD Branson last night hit out at claims that he no longer backed the government’s deficit reduction plan, arguing The Observer had selectively quoted him yesterday, misrepresenting his policy stance.
Virgin Group founder Sir Richard backed George Osborne’s economic policies in 2010 and, contrary to reports, says he has not withdrawn that support but merely suggested additional steps to counter the tough situation faced by small businesses.
“There is a timing issue at the moment as the UK economy is being squeezed by the impact of less public sector investment funded by borrowing,” he said, “as well as uncertainty over the Eurozone and fears over Greece.”
Those twin pressures mean the government needs to take more steps to help small firms, which the famed entrepreneur sees as “the engines of any healthy economy.
George Osborne “should look at reducing business rates and regulation on small and start-up companies. It is these costs and rules that are hampering employment growth,” Branson explained.
The government “could look at introducing policies such as a National Insurance holiday on hiring people for the first two years,” he added.
It is understood that Sir Richard disagreed with The Observer’s claim that he “dramatically turned on the coalition,” as he actually proposed a more balanced approach which responds to events rather than sticking solely to plans made in 2010.
Sir Richard also said he favours moves to boost flexible working, which he hopes would benefit workers and bring down unemployment overall. “I am a strong believer in encouraging more flexible working practices,” he said. “This will help promote part-time working and enable companies to take more people on. It should help reduce unemployment and it has proved to be a big help to Germany in its recovery post the unification.”