Saving Britain’s future — our 10 steps to sort out UK Plc

"With the retirement of its long-standing managing director, a series of new CEOs' came in. Keen to make their mark, they took the business public and pushed into new markets, particularly complex financial products'. Profits surged, UK Plc took on new people, market expectations soared. With the disposal of its old industrial divisions, credit ratings hit triple-A.

"A focus on the P&L, however, led management to neglect the balance sheet. Huge levels of debt were built up. This new leveraged' structure was justified by the promise of ceaseless future earnings from the globalised market.

"The business model was robust', spokesmen insisted. However, when its debt providers retrenched and customer confidence nosedived, the strategy of the recently rebranded Cool Britannia was exposed."

Saving Britain's Future is our response to the Government's Building Britain's Future programme. Ours presents practical ideas for reigniting Britain's spirit of enterprise and giving us a chance to become a proper economic power again. We do not advocate a return to short-termist "wealth-creation" that spawned what Financial Services Authority chairman Lord Turner calls "socially useless" commercial activity. In our view, a good business needs predictable, long-term revenues. It needs well-trained, enthusiastic people and manageable levels of debt. It should produce strong products that people buy because they need or want them, not just because they've been "sold" into submission by squadrons of outsourced telesales operatives.

How do we get there? Here's how:

1. Two-year tax holiday for first-time entrepreneurs.
To help novice entrepreneurs, we propose a package of tax breaks lasting two years. This would be a once-a-lifetime benefit to
help genuine first-time entrepreneurs through the difficult start-up period.

2. Abolish Enterprise Investment Scheme exclusions.
Under current rules, EIS covers only equity finance and forbids staff and directors.

3. Business & IP Centres for other UK cities.
The British Library's Business & IP Centre has been a huge success. Now it's time for Cardiff, Belfast, Birmingham, Edinburgh, Leeds and Bristol to get their own centres.

4. Create nationwide intensive internship scheme for 15-year-olds.
Project Aspirations, chaired by Alba founder John Harris, has provided the perfect model for introducing schoolchildren to the world of commerce. Now Project Aspirations must be rolled out across the UK.

5. Reduce tax complexity
Tolley's tax guide has doubled in size since 1997. Even the Lord Chief Justice laments the complexity of the tax code. For entrepreneurs, there is the cost of compliance and the
threat of HMRC investigation. Often the law is obscure even to tax experts — an unacceptable situation. The solution lies in increased consultation and the creation of an Office of
Tax Simplification.

6. Enforce the Prompt Payment Code
Government departments are required to pay suppliers within 10 days. Serious failures of some authorities to adhere to this code are creating cash-flow crises for small firms. The code must be enforced across all state departments.

7. Introduce feedback at Business Link
Using the Government's Business Link service is
a lottery. Entrepreneurs blindly select independent consultants from a list provided by Business Link. No information on quality is provided. This needs to change. A web-based feedback system would help to make informed choices about which organisations they seek help from.

8. Public procurement must be entrepreneur friendly.
With £175 billion up for grabs each year, entrepreneurs need access to public-sector contracts. Three simple measures would improve their chances: a return to meet-and-greet sessions with buyers; opening up the Approved Supplier Lists; feedback on unsuccessful tenders.

9. Create a £1 billion investment scheme for small firms
The Government's two flagship investment schemes for small firms, Regional Venture Capital Funds and Early Growth Funds are now closed. The replacement funds are inadequate. Small firms urgently need a £1 billion venture capital fund to stimulate start-up activity.

10. Full-time Small Business Secretary at BIS
Baroness Vadera is shared between the department for business and the Cabinet Office, and is in reality Gordon Brown's adviser on the credit crunch. She should be exclusively stationed
in the department of business, and have one job:
promoting the interests of small businesses. The post should last the duration of Parliament to eliminate the constant ministerial reshufflings which have undermined the influence of the role. Oh, and we demand a full time Enterprise Tsar. Lord Sugar regards this crucial job as part time.

Charles Orton-Jones and Matthew Rock work for entrepreneurs' magazine Real Business. Read the full manifesto at: www.savingbritainsfuture.co.uk