By Claire West

The Chancellor of the Exchequer, George Osborne and Business Secretary Vince Cable today announced a fundamental review of what all parts of Government are doing to create the best conditions for private sector growth.

Building on the action already taken by Government and outlined in the paper, The path to strong, sustainable and balanced growth, business is being invited to take part in this work which will challenge every Government department on the measures being taken to tackle barriers to growth.

The growth review will start with an intensive programme of work, based on the evidence provided by business, to report by Budget 2011. Departments will be required to present Action Plans to a Ministerial Ad hoc Group chaired by the Chancellor and Business Secretary, on what contribution they will make to:

* reform structural barriers across the whole economy in planning, competition, trade and investment, regulation, access to finance and corporate governance;

* remove barriers in sectors where there are clear opportunities for growth and where Government can make a difference: construction; retail; health and life sciences; professional and business services; manufacturing; and digital and creative industries.

This is just the start. These specific sectors and structural areas have been identified as a priority for the Government, over the course of the review, the Government will need to take a forensic look at all sectors of the economy. The work will continue for the lifetime of this Parliament, ensuring all Government departments think first and foremost about the impact of their policies on growth.

Chancellor of the Exchequer, George Osborne, said:

“Alongside the corporate tax reforms announced today, the growth review contributes to the Government’s drive to remove the barriers to growth and improve British competitiveness.

“We have been clear that growth will be driven by the private sector. By working closely with business and industry in this intensive programme of work, Government can make sure that Britain is open for business.”

Business Secretary, Vince Cable, said:

Growth is the primary focus of the Government, but this will not happen overnight. That’s why we’ve set out a long-term vision to create the right conditions for future economic prosperity.

“We cannot lay out plans for how the economy will grow - growth is delivered by the private sector. What we can do is provide the conditions to promote a new economic dynamism, harnessing our strengths, removing the barriers and putting the private sector first when it comes to decisions on tax, regulation and spending.”