25/02/13

Kent bosses call for investment in growth after loss of AAA rating

by business editor Trevor Sturgess

Kent bosses have called for more investment in growth after the UK was stripped of its triple A status.

Moody's decision to reduce the UK's coveted status to AA1 hit sterling and heaped criticism on chancellor George Osborne.

Lack of growth and the country's escalating debt problems despite the coalition government's austerity measures were the main reasons for the downgrade.

Many have called on Mr Osborne to implement a Plan B to stimulate growth.

Kent's business leaders believe easier access to finance is key to economic turnaround.

Nick Yandle, chief executive of Gallagher Group, the Aylesford-based civil engineering, aggregates, building and property business, said: "The banks must make finance available and without imposing ridiculous demands on either the cost of the facility or the security.

"Major lenders have become impersonal and don't trust themselves to judge business people or the opportunities presented to them. As a result they continue to stifle the economy while milking those who can or must pay."

The leaders also called for more investment in infrastructure which meant supporting construction.

Paul Wookey, chief executive of Locate in Kent and pictured right, the county's inward investment agency, said: "You can't have a healthy economy without a healthy construction industry, and the government must support major infrastructure projects.

"This would get more people in the sector working, present employment and training opportunities for young people, and result in a massive boost to the supply chain."

Charles Buchanan, chief executive of Manston Airport, said: "Rebuilding confidence will be fundamental to future business growth. A key part of achieving this will be by the government investing in new infrastructure, or improving what we already have.

"Across Kent, as elsewhere across the South East, there are a series of ‘pinch points’, such as the Dartford River Crossing, restricting the free movement of traffic and hindering business efficiency. Tackling these should be a national priority.

"Kent already benefits from High Speed 1, and with a little investment in the service between Ashford and Ramsgate and the creation of the Thanet Parkway Station, further business growth could be unlocked across East Kent."