IoD launches new growth plan

A CUT in corporation tax and a cull of employment red tape are among 15 ideas put forward in a new plan for growth to be launched by the Institute of Directors today.

The plan suggests the government should promise to reduce corporation tax to 15% by 2020 and return control over employment laws from Brussels to the UK.

It also makes the case for the top rate of income tax to be restored to 40p and calls on the Monetary Policy Committee to embark on a fresh round of quantitative easing.

New IoD director general Simon Walker said: “No aspect of economic policy is more important than returning Britain to a growth trajectory.

“Without the belief that UK economic growth is expanding, confidence will wane, international investment will dwindle and British consumers and taxpayers will be left picking up the crumbs at the tables of faster growing competitors.

“The government’s deficit reduction programme is a step in the right direction but it must go faster and further before the economy is on track and prosperity returns.”

The government came under pressure to flesh out a more comprehensive growth strategy over the weekend after comments by Treasury Select Committee chairman Andrew Tyrie.