WHEN Gordon Brown summoned dozens of leading businessmen to the Treasury three weeks ago for his first ever business advisory summit, the atmosphere was constructive and convivial.

The chancellor was told about the impact of red tape and high taxes on business competitiveness. There was an animated discussion about Britain’s low skills and its infrastructure shortcomings.

Those attending were impressed, but were savvy enough to conclude that the proof of the pudding would be in the eating. After the chancellor’s pre-budget report last week, most are still waiting for the pudding to be served.

If Brown took away the message that business taxes are too high compared with those of our competitors, he gave no hint of it in his speech. Suggestions that the more aggressive taxman, the new Revenue & Customs, would be put on a leash also came to nothing. The Treasury aims to raise an extra £1 billion a year by closing tax “loopholes”.

“There was no acknowledgement of the CBI’s recent call for a reduction in business taxation,” said Bill Dodwell, head of tax policy at Deloitte. “While UK business welcomed the Varney review, which covered the administration of the tax system, it also called for a reduction in the tax burden. Instead, various corporate and personal tax loopholes are to be closed.”

Businesses liked what they heard from the various reports commissioned by Brown, including Sir Rod Eddington’s transport study, Andrew Gowers’s review of intellectual property and Kate Barker’s call for a shake-up of the planning system. “The new emphasis on training, skills, planning, transport and intellectual property are all welcome and could make a real difference to Britain’s future competitiveness if delivered fully, quickly and intelligently,” said Richard Lambert, CBI director-general. “However, on the critical issue of tax competitiveness, there was silence.”

The key, for business, is for the government to act on the recommendations of its experts. “It is essential that these reviews are not left to gather dust on the shelves,” said Martin Temple, the director-general of the Engineering Employers’ Federation.

Business also welcomed the announcement by Brown to police more effectively firms that do not honour the minimum wage.

“Our members are the most affected by those who act illegally to undercut them,” said John Walker, president of the Federation of Small Businesses. “The monitoring of the minimum wage need not be heavy handed or time consuming for small businesses but it should hit law-breaking employers hard.”

But Britain’s builders heard with mild astonishment the chancellor’s pledge that by 2016 every new home built in Britain is to be “zero carbon”, with the carrot of stamp-duty exemption to encourage the shift, although only for a limited time. While the industry has worked to make new homes more energy efficient, zero-carbon homes are the smallest of niche markets.

“This is another example of ‘gesture politics’ with very little thought for implementation,” said Roger Humber, strategic policy adviser to the House Builders Association.

“New-house builders should not be made scapegoats for solving environmental problems. The government should instead concentrate its efforts on the energy-supply industry, developing renewable sources that can be utilised across the entire UK housing stock, not just the 200,000 new homes built each year.”

The other sector smarting from Brown’s “green” agenda was aviation. While high-emission cars and 4x4s escaped another tax hit — although excise duty on petrol was raised by 1.25p a litre — air-passenger duty was doubled. The lowest rate on economy seats on European short-haul flights rose from £5 to £10, and that on business-class long-haul journeys from £40 to £80.

“Air-passenger duty is the poll tax of the skies and will hit ordinary travellers hardest of all,” said Mike Rutter, chief commercial officer of Flybe, the low-cost airline. “It is a regres- sive tax on our passengers that has nothing to do with environmental considerations. This tax hike will hit hard- working people who have been able to enjoy affordable air travel for the first time, thanks to the low-cost revolution.”

One businessman with a big job to do as a result of the pre-budget report is Sir Digby Jones, former director-general of the CBI. Lord Leitch’s review of Britain’s long-term skills needs, commissioned by Brown, found that out of 30 OECD countries, Britain lies 17th on low skills, 20th on intermediate skills and 11th on high skills, that 5m adults in the UK lack functional literacy; 17m adults have difficulty with numbers; and more than one in six young people leave school unable to read, write or add up properly.

Jones, who will be the government’s unpaid skills envoy, will have the task of knocking heads together. “This really is the last-chance saloon for employers regarding training,” he said. “From ensuring that school-leavers are literate and numerate, to helping adults who are inadequately skilled, I look forward to helping equip Britain to compete in the 21st century.”

He’ll need all his skills for that.