In the lead-up to the 2012 Budget, Ryan Bourne and Tim Knox set out 21 policies for growth and wealth creation in a note to be published on Wednesday 14 March by the Centre for Policy Studies.
Their top proposals are:
- Increasing the income tax personal allowance to £9,000 this year and £10,000 next year (as originally proposed by Maurice Saatchi in 2001).
- An immediate cut in the main rate of Corporation Tax to 20%, accompanied by a clear announcement to cut the main rate further (subject to closing avoidance loopholes).
- A 1 percentage point cut in employers NICs and two-year holidays for small firms on their next four employees.
- Abolition of the 50% income tax band.
- A bold programme of employment deregulation for small businesses.
- The reintroduction of the 10p tax rebate on pension assets’ income.
The authors also list specific savings in government expenditure which, together with a portion of the forecast overshoot, will more than finance the above measures.
Media Impact:
- Daily Telegraph: Means-test pensioners’ bus passes to reduce deficit, Osborne told
- The Commentator: The Good Samaritan did not just have good intentions – he also had money
- Public Finance: Think-tank calls for cuts in tax and regulation
