Economy needs a 'new direction'

Business leaders have criticised the government over the economic crisis, saying Britain needs a "new direction"

The 11 heads say less regulation and more tightly controlled public spending would have left the UK better prepared.
The figures, most of whom have links to the Tories, were said to be expressing their personal views in the letter to the Financial Times.
The criticism comes as former treasury minister Ed Balls warned of tougher regulation for the finance industry.
The group of business leaders includes JCB chairman Sir Anthony Bamford, Next chief executive Simon Wolfson and Carpetright chairman Lord Harris.
But Labour questioned the "credibility" of the letter.
A party spokesperson said: "This is a statement from 'business leaders' that include Tory peers and Conservative party donors.
"Its credibility must be in question when it is headed by Simon Wolfson, the man who co-authored Tory proposals last year to abolish mortgage finance regulation."
'Clear lesson'
The criticism follows Marks & Spencer chief executive Stuart Rose's comments to the BBC that Labour should have acted sooner to prevent the financial crisis.
The group's letter read: "The lesson of recent years is clear. Economies must carefully manage public spending and reduce unnecessary budget deficits.
"They should have simple taxes and competitive tax rates and reduce the burden of regulation. Finally they must improve educational performance. "Only then will they be well placed to weather economic difficulties and lay the foundations for long-term growth.
"It is time for a new direction which ensures that in future Britain is better prepared for economic downturns and better placed to compete in a global economy."
Mr Balls, who is now Children, Schools and Families Secretary, said Labour had been right to impose regulation since coming to power in 1997.
In a speech to a Fabian Society fringe meeting at the Labour conference, he said: "In fact in some areas we should definitely have been tougher and will need to be tougher in the future," he said.
"We do need to toughen up standards of corporate governance and regulation," he added.
"Of course, we didn't get everything right. But fundamentally the Labour Government over the last 10 years was in the right place."
Among the others who put their signature to the letter were Severn Trent chairman Sir John Egan; Whitbread chairman Anthony Habgood; Sir John Craven, chairman of mining firm Lonmin; and Lady Louise Patten, chairman of commercial property company Brixton.
George Robinson, founder of City firm Sloane Robinson; Anthony Fuller, president of brewer Fuller, Smith and Turner; Lord Leach, director of conglomerate Matheson & Co; and Mike Clare, president of bed retailer Dreams, also signed.