Plan to boost the economy
The Institute of Directors (IoD) has proposed a new economic growth plan which aims to improve business investment and development. ‘The Route Back to Growth’ contains several recommendations including:
1. | Monetary policy - Quantitative easing; launch QE2 in October with an initial £50 billion |
2. | Fiscal rules - A new 35% of GDP public spending target by 2020 |
3. | Taxation - Remove the 50% top rate of income tax |
4. | Taxation - Extended corporation tax cuts to 15% by 2020 |
5. | EU policy - Use future Treaty and/or budget negotiations to repatriate key employment powers |
6. | Infrastructure - Ring-fence transport, energy and ITC infrastructure spending |
7. | Energy policy - Do no harm - don’t sacrifice UK competitiveness for green credentials |
8. | Education - Further expand free school provision with profit incentives |
9. | Taxation - End the £100,000 personal allowance anomaly |
10. | Competition policy - Intensify competition policy both domestically and within the EU |
11. | Regulation policy - Radical civil service reforms to promote de-regulation |
12. | Employment Law - Nine major changes to free up the labour market |
13. | Planning - Incremental ‘Green Belt’ and developer rights to propose, and reduce political influence over infrastructure planning |
14. | Public sector performances - Greater decentralisation of public sector pay |
15. | Public sector performances - No watering down of reforms to unfunded public sector pensions |
The IoD claims that if its suggestions are adopted by the government, it could make the UK one of the most advanced economies in the world.