Monday 2 October 2006

Policies we need for a growth economy

George Osborne speaks tomorrow and we heard from Gordon Brown last week; but both the main parties are offering more of the same in terms of economic progress. I am at the CBI economic dinner with various economists later this week so shall put some of these to the test on them:

1. Lower business taxation - It has worked for Ireland to great effect and for the USA. Lower taxes promote growth and this more than makes up for the lower rate. No need to go mad, reduce to 25% and watch receipts from corporates grow by more than 7% over 2 years.

2. True Accounting - Make the national statisitcs office independent, allow them to define the rate of inflation and the 'basket' (see posts re inflation below). Also allow the audit office, again independently run, to decide if PFI really is off balance sheet expenditure.

3. Tax fairly- Scrap means testing and instead increase the lowest threshold for paying tax at all. This gives the most beneift to the poor and stops pointless and degrading means testing. Stop the fiscal drag of not rasing thresholds each year in line with inflation.

4. Give tax breaks that will benefit a growing economy, tax incentives for green business investment for example. Encourage R&D spending with further tax incentives to ensure we build our investment and improve productivity.

5. Scale down the DTI, remove subisidies for the military businesses and stop wasting oney on goverment interfering with business directly. Every penny wasted on the Scottsih Executive, Yorkshire Forward and their ilk is a disgrace; you may as well re-nationalise the airlines for all its economic benefit.

I hope some of these will be taken up, one day...feel free to add your own thoughts

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