The Centre for Policy Studies today releases a rigorous list of supply-side measures aimed at improving the underlying fundamentals of the UK economy and revitalising productivity.

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These 101 recommendations to restore productivity growth and secure the recovery have been submitted to HM Treasury, and when taken together are budget-neutral.
 
The proposals will be fully published in two weeks in “101 ways to crack the productivity puzzle and secure the recovery”.

CPS Budget Policies
 
Deregulation

  • Update One in Two Out rule to include tax administration changes and EU regulations.
  • Adopt sunset clauses for all regulations.
  • Continue to cut house building regulations.
  • Relax planning regulations on the construction of new garden cities.
  • Enforce greater regulatory transparency across Government departments.
  • Commit to reducing the total cost of regulation each year.
  • Create a new ‘no fault dismissal’ for underperforming employees.
  • Strengthen the power of tribunals to strike out claims with no reasonable prospect of success.
  • Promote greater use of alternative dispute resolution.
  • Encourage flexible working for senior employees by enabling ‘protected conversations’ with workers aged 65 and over.
  • Abolish the Working Time Directive.
  • EU regulatory reform more generally. 

Tax Reform

  • Let low paid workers keep performance related pay tax free.
  • Business Tax guarantee. No future increases in the corporation tax rate.
  • Transport Tax guarantee: No further increases in fuel duty.
  • Cancel the introduction of taxpayer funded school meals for children from higher income families.
  • Reform Capital Gains Tax through the introduction of rollover.
  • Cut Capital Gains Tax rate to the revenue maximising rate.
  • VAT simplification.
  • Vehicle excise duty simplification.
  • Stamp Duty Land Tax reform.
  • Allow small business to use cash basis for calculating profit.
  • Simplify the taxation of termination pay.  
  • Abolish the temporary annual investment allowance extension.
  • Abolish the temporary retail sector business rates discount.
  • Abolish the 12 month extension of Small Business Rate Relief doubling.
  • Earlier introduction of abolishment of employer NICs for under 21s.
  • Earlier introduction of 20% Corporation Tax.
  • Scrap employer NICs for all micro-business in their first year.
  • Commit to more radical reform of business rates.
  • Dividend Tax simplification.
  • ISA reform to promote greater uptake and flexibility. 

Competition Policy

  • Increase retail banking competition through liberalised licencing.
  • Free Challenger Banks to compete with the existing market participants.
  • End restrictions on upstream and retail services to increase water industry competition.
  • Open water industry competition to households.
  • Faster introduction of retail sector competition in the water industry
  • Energy market reform: An annual statement showing the tariff charged and total household energy consumption.
  • Energy market reform: Annual renewable energy contracts with a fixed tariff.
  • Freeze the carbon price floor.
  • Build on the progress of the GDS in helping SMEs compete in public sector IT procurement.
  • Privatise the Green Investment Bank. 
  • Establish a Financial Competition Commission.
  • Maintain open access to equity based crowdfunding.
  • Trade union reform: Introduce a 50% threshold in strike ballots.
  • Embark on a new privatisation programme of state owned assets.
  • Adopt the ‘Fair Shares’ scheme for the reprivatisation of Lloyds and RBS.
  • Encourage greater competition between rail operators. 

Skills Reform

  • Reinstate the Young Apprenticeships system.
  • Reduce the bureaucratic burden on employer led apprenticeships. 
  • Introduce more sophisticated apprentice performance metrics.
  • Abolish the 8 week cap on the Work Experience Scheme.
  • Encourage over 50s back into the labour market.
  • End restrictions on the provision of shorter employer led courses by universities.
  • Extend the deregulation of Higher Education service provision.
  • Extend the deregulation of Higher Education financing.
  • Exempt strategically important subjects from the equivalent and lower qualifications policy.
  • Tear down barriers between enterprise and education through private sector capital investment in schools.
  • Extend performance pay for school teachers. 
  • Promote professional development to improve teacher performance after 5 year periods.
  • Give all schools regardless of status the freedom to outsource services.
  • Use more varied methods to measure teacher quality. Publish aggregate performance data.
  • Include employment rates and average earnings of alumni in school league tables.  
  • Include data in school league tables on the number of interactions with employers.
  • Include data on ICT and foreign language in school league tables.
  • Continue deregulation of childcare.
  • Simplify visa requirements for the highest value non-EU workers.
  • Commit to the extension of the Gulf visa free scheme.   
  • Further simplify the visa process for Chinese businesses.   
  • Make more use of payment by results in welfare reform.
  • Convert part of JSA into retraining voucher for the long term unemployed.
  • End the ban on participants in the Work Programme from being able to use the New Enterprise Allowance scheme. 

Innovation Promotion

  • Set up new accelerated patents.
  • Protect and aim to extend the UK patent box.
  • Allow SMEs to postpone the payment of patent renewal fees for the first 10 years.
  • Free the Intellectual Property Office to compete with other patenting authorities.
  • Tackle non-practicing entities acting as patent trolls.
  • Push for improvements to the EU Patent Reform.
  • Further tax simplification for employee share ownership.
  • Ease restrictions on capital market issuance by SMEs.
  • Continue the deregulation of lending by Building Societies.
  • Swiftly enact the Saatchi bill to promote medical innovation.
  • Push for reform of the EU ‘Precautionary Principle’.
  • Extend the New Enterprise Allowance scheme.        

Infrastructure Policy

  • Allow investors in Superfast Broadband to make use of patent box corporation tax scheme.     
  • Update cost-benefit analysis of transport infrastructure investments and refocus towards projects with highest returns.
  • Support an EU wide push for fracking.
  • Quickly implement the recommendations of the Davies Review of airport capacity.
  • Carry out short term measures to increase aviation capacity.  

Exports

  • Push for faster introduction of the EU single market in public sector procurement.
  • Push for a lower contract value above which EU public sector procurement is subject to competition.
  • Increase accountability within UKTI.
  • Give UKTI a new responsibility for advice on productivity enhancing “Smart Importing”.
  • China strategy: ensure UKTI staff are adequately trained.
  • Lift the cap on General and MBA Endorsements on the Graduate Entrepreneur Scheme.
  • Reform Section 7 of the corporate offences clause of the Bribery Act.
  • Simplify the UK transit visa rules.
  • Simplify the tourist and business visitor visa process.
  • New streamlined short stay visa for people visiting for private medical treatment.
  • Concerted push for reduction and simplification of EU tariffs on fast growing economies.
  • Oppose any attempts to slow down agreements on the Transatlantic Trade and Investment Partnership and the Trade in Services Agreement.

News Source : The Centre for Policy Studies today releases a rigorous list of supply-side measures aimed at improving the underlying fundamentals of the UK economy and revitalising productivity.

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