Today we have the debate on how to secure faster and more consistent economic growth in the UK. I will be proposing a five point plan for the government.
HONEST MONEY The Bank should be told no more quantitative easing and reminded its sole aim is to get inflation back to target. Neither the public nor the private sectors can afford inflation of nearly 5% on the RPI.
LOWER TAXES The government needs to raise an extra £176 billion a year in tax by 2014-15 to deliver its plan. If it cut Capital Gains Tax and Income tax rates it would be easier to deliver, as lower rates lead to higher revenues and more growth.
MORE AND BETTER BANKS The policy to make the UK banking market more competitive needs to be brought forward. The Regulators should agree that the main UK banks now have enough cash and capital to be secure, allowing them to lend more to business and for major infrastructure projects.
LESS AND BETTER REGULATION The government needs to revive its promised deregulation bill. Deregulation is the tax cut for business that does not cost the Treasury revenue. Sensible deregulation saves the government money as well.
MORE PRIVATELY FINANCED INFRASTRUCTURE The government needs to make prompt decisions on the regulatory frameworks and planning position to allow the construction of a new generation of power stations and to permit more privately fiannced transport provision. It needs to crack on with its plans for faster and better broadband throughout the UK.