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What business wants from Brown 
The key points the IoD makes revolve around the need for government to back-off and let business get on with generating wealth. This may not sound very original, nor is it something that you can expect a labour administration to warm to. But the fact is that, as reported in the Daily Telegraph on 19th June, the manufacturing base in this country is no larger now that it was a decade ago and the proportion of Gross Domestic Product (GDP) it represents has shrunk to just 15%, having lost 1.25 million jobs on the way. Something has to be done.
Foremost amongst the IoD proposals are: Reduce the size of the state – The state accounts for far too large a proportion of GDP; economies are much needed in the form of a comprehensive regional spending review, with the overall growth in public spending being limited to 1.5% a year for the next three years. Improve productivity – This can be achieved by investing in education in schools and throughout life, by encouraging enterprise and initiative and being more proactive in promoting efficient working practices. Reduce and simplify the tax and regulatory burden on business – The IoD believes that there should be a formal target to reduce net taxes and social security costs over the economic cycle, as a proportion of GDP. The regulatory culture in Whitehall also needs to be relaxed, so that non-statutory solutions can be used to meet departmental challenges. In particular, the emphasis should change from creating lots of plans to implementing the ones that exist. Support for businesses also needs to be streamlined. Stimulate competition in public service delivery – The IoD argues that constraints over choice in education and health stifles the very competition between private and public sectors that could lead to vastly enhanced performance in the public sector, to the benefit of everyone. Respond to global warming – One of the greatest challenges facing the country (and the entire world) is climate change. The IoD believes that damaging the competitive ability of UK companies by imposing unrealistic constraints will simply lead to increased competition from third world countries, where carbon emissions are even worse than in the UK competition. At the same time, an urgent decision is needed about alternative energy sources, so that reliance on carbon hungry power stations can be reduced. Improve transport infrastructure – Expenditure on improving road and rail links as well as other forms of transport is said to be long overdue. However, unless increased expenditure is balanced by severe cuts in wasted public spending in other areas, there will be no overall economic benefit. Embed 3% NPSS contribution level in law – There is considerable concern that the employer contribution to National Pension Savings Scheme will become a political football, subject to increase at the whim of governments of the day. Since this is an additional burden on the cost of employing every person, it should not be allowed to be ratcheted up over time, as happened in Australia If you require any further information about the services that we provide or would like to review your financial planning position, please contact us |