LOWER corporate taxes, lower state spending and protected infrastructure spending are among 15 measures proposed today by the Institute of Directors (IoD) which it believes would boost the economy.
Launched by new director-general Simon Walker, the IoD’s 15-point plan to “return Britain to a growth trajectory” covers taxation, regulation, planning laws and education policy.
The government is cutting corporation tax from 26 per cent to 23 per cent by 2014. That will take the UK from 19th to 13th among the OECD countries and is “not enough” says the IoD.
“A 15p rate would put us in 2nd place, a major competitive advantage.”
The report also proposes that state spending be gradually reduced to 35 per cent of GDP, compared with 50.1 per cent this year; that the Bank of England expands its quantitative easing programme by a further £50bn immediately; and that the UK should “assess whether its uniquely aggressive carbon emissions targets put it at a competitive disadvantage”.
Walker also hit out at those who call for more government spending in an effort to boost short-term demand: “The Government's deficit reduction programme must go faster and further before the economy is on track.”