Government should choose correct path – IoD chief

SIMON Walker, the new director general at the Institute of Directors, is to urge the government to continue down the “politically difficult but economically correct path” towards recovery.

Mr Walker will use his first annual dinner speech this evening to argue that over recent decades politicians have become cavalier about the UK’s competitiveness.

The speech will coincide with the findings of a survey of more than 1,000 IoD members, which reveals 46% have found the burden of employment law has resulted in them making a decision not to expand their workforces.

In his speech tonight, Mr Walker will say: “Before the crisis, we had 15 straight years of economic growth.

“We lived in an age of affluence, but our leaders frittered it away. No-one in government thought to calculate the total of the new burdens put on business.

“By 2007, according to the World Economic Forum, there were 81 countries that had less burdensome regulations and 80 countries with tax systems that did less damage to incentives to work and invest.

“This wasn’t even second division performance. It’s up to us as business leaders to create a more sustainable prosperity.

“What we all need is for government to help create a world-class business environment in the UK.

“It’s not just about reducing government spending to a more sustainable level and removing damaging tax rates.

“It’s also about expanding free schools, so that in the longer term we can benefit from better educated young people.

“It’s about making the right choices on energy policy, so we can keep the lights on in a cleaner, cheaper way.

“And it’s about freeing up blockages in the planning system so that we can build more houses and build the better infrastructure that we need.”

The IoD has also launched its autumn statement of 10 reasons why the government should stick to its present economic policy today.

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