Ministers could find savings of £3.5bn per year

MORE THAN £3.5bn of savings could be found by the government each year, a new report claims.

The savings, equivalent to 75,000 average salary jobs, are outlined in a new report being handed to ministers tomorrow by business lobby group London First.

Set to coincide with a speech by business secretary Vince Cable at the Mansion House, the organisation’s “growth white paper” lists a raft of recommendations to boost growth.

More than £1bn of the savings could be made if the government were to say it planned a new, lighter tax regime.

According to a Policy Exchange report, 11 per cent of individuals working in the financial services sector said they were considering a move away from Britain because of tax.

The London First report estimates that if only one quarter of them left, £1.375bn would be lost to the UK economy.

Airports operator BAA yesterday backed London First’s call to get rid of “needless red tape” to boost UK?tourism.

A business department spokesperson said: “We are working closely with business on the growth review to remove barriers, promote and support innovation and entrepreneurialism.”