Budget needs to focus on growth | EEF

Budget needs to focus on growth

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In the run up to Wednesday's budget there has – as usual – been a significant amount of speculation about the measures the Chancellor will adopt.

Discussion of extended trading hours during the Olympics, toll roads and personal taxation seems to be doing the rounds.

But I can't help wondering, if this is the bigger issue:

GDP growth all-but flat lined in 2011.

What we need from this budget is a stronger, clearer commitment to growth from the government.

We need economic policies that are focused on achieving a stronger economy, with better balanced growth.

The policy priorities for government must be determined by the extent to which they would promote this type of economy.

So how do we get there?

Specific policy priorities to bring about a stronger economy include:

  • A two year temporary increase in capital allowances to 100%
  • Ensuring that the new National Loan Guarantee Scheme which is designed to reduce the cost of credit is widely available and accessible to business
  • Reducing national insurance contributions for firms recruiting 18-24 year olds

We will blog more on these priorities tomorrow.


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