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    By their measures there have certainly been some improvements in the UK economy in the last couple of years and the reason we are doing so well, by comparison, is we still have a more flexible labour market. Germany has done very well though because of their labour market reforms and in some ways overtaking us in that respect. Another factor is innovation.

    We must not be complacent. Things are tough and life needs to be made a lot easier for small businesses when it comes to employing people if we want growth. The main source of potential growth is small businesses and these are the ones finding life a lot harder when it comes to taking people on and complying with the still excessive red tape and costs.

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