How to grow the economy – An Alternative White Paper for Sustainable Economic GrowthMarch 2, 2011
Business leaders in the London will today call on Government to do more to support growth, and provide a much needed boost for the economy. In its White Paper for Sustainable Economic Growth, influential group London First identifies a number of areas which, if addressed, would grow the UK economy, create additional jobs, and help reduce the fiscal deficit.
Overseen by a steering group of business leaders, the paper makes 30 recommendations for Government, none of which would require additional spending or tax cuts. Implementing less than a third of the recommendations would release over £3.5bn into the economy, and support 75,000 average salary jobs.
Amongst the recommendations are:
- A streamlined visa process to encourage growth in tourism from new markets like China
- Creating an open economy by allowing legitimate, economically lucrative migration
- Tighter rules to reduce the incidence of strike action, including the need for 40% of balloted members to support strike action and majority of voters
- Rule in all options for new capacity in the Government’s forthcoming aviation review, and sharpen incentives in new regulation to provide better service.
- Improving the UK’s engagement with EU policy development
- Create a stable, transparent and internationally competitive tax regime and avoid regulation which is out of step with competitor countries.
Baroness Jo Valentine, Chief Executive of London First said:
“The Government is in the early stages of a programme of spending cuts and tax increase – These measures are necessary, but economic growth is the best solution to addressing the fiscal deficit. The Government must create an environment in which the private sector can grow.
“So Government has failed to set out a coherent strategy for growth. By tackling just a few of the issues identified by this alternative white paper – such as streamlining visas, building confidence in the stability and competitiveness of our tax regime and introducing tougher rules on strikes – billions of pounds of extra growth will be released into the economy, supporting thousands of new jobs. And none of the proposals carry significant cost to the taxpayer.”
Notes to Editors
The White paper includes 30 recommendations. None of these represent substantial costs to the Government. Implementing less than a third of them would generate a demonstrable over £3.5bn or in the region of 75,000 average salary jobs. A full breakdown is listed here (for illustrative purposes only)
London First is a business membership organisation with a mission to make London the best city in the world in which to do business. London First undertakes this by mobilising the experience, expertise and enthusiasm of the private sector to develop practical solutions to the challenges facing London. London First also seeks to persuade central and London government to make the investments that London needs in its infrastructure
London First delivers its activities with the support of the capital’s major businesses in key sectors such as finance, professional services, property, ICT, creative industries, hospitality and retail. Membership also includes further education colleges and all of London’s universities. London First members represent over a quarter of London’s GDP.