•Economic growth. The objective is to produce more goods and services each year so that individuals have a higher standard of living. The government can change the way businesses work and impact the economy either by passing laws, or by changing its own spending or taxes. For example: •Extra government spending or lower taxes can result in more call in the economy and lead to higher production and employment.
The local GovernmentEvery area in the UK has a local council but their titles vary. All councils want their area to prosper and develop to tempt business to transfer and start up in their area. They also have legal power to take certain arrangements to benefit the local community. Local government gathers rates from firms and can use the law to block planning permission for new premises. The European Governmentthe European Union play a big part in influencing business activity today: •through taxation and spending
•through laws, directives and regulations
•through encouraging business activity through subsidies and support •By providing advice and support for business.
The EU also tries to ensure that all business compete fairly with each other and promotes rivalry laws to keep prices low for customers within the EU.