THE deficit is falling, so should we change path now?

We heard last week how, for the financial year ending in March 2015, public sector net borrowing, excluding public sector banks, was £11.1bn lower than in the previous financial year.

These recent figures are good news for the coalition parties in the lead up to the general election, but will this continue after the big day in May?

The UK has seen some good economic progress in recent months and Dorset’s economy tends to mirror UK trends. Businesses across our county are looking forward with some optimism, but they must not become complacent as competing places are not standing still.

Issues of low productivity and poor market engagement remain significant. Internationally, the UK’s relative productive position is already lower than over recent decades and has declined in recent years. Productivity across southern England remains less than might be desired and Dorset’s output per hour is 7.3 per cent below the national average.

The next government needs to focus on creating conditions for businesses to invest and grow so that companies can add competitiveness, through innovation and investment to raise long term productivity.

What is worrying though is that there have been policy proposals that would undermine entrepreneurship, aspiration and business growth, such as new levies on companies and a limit on the tax relief for genuine wealth creators and small investors.

The British Chamber has called for the political parties to bring the focus back to long-term growth. Our businesses want to see a clear vision for the UK’s future success.