Government needs to make space for business to drive recovery
- Published on Wednesday, 08 August 2012 11:49
- Posted by Scott Buckler
Responding to the Bank of England's latest report, Ruth Porter, Communications Director at the Institute of Economic Affairs, said
"It's hardly surprising the economy is not recovering when the government has failed to reduce public spending significantly. Focusing on increasing private sector investment and productivity is the key. Heavy regulation and high taxes will inevitably put businesses off investing.
"Rather than raising various taxes, the coalition needs to focus on creating the space for major tax cuts. Deregulation measures such as liberalising the planning environment would also be a massive boost to industry.
"They must also counter the uncertainty facing businesses by making the labour market more flexible. Increasing productivity is vital and reducing high marginal tax rates will help with this."