2012 Budget: 21 policies for growth and wealth creation

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:

Tim Knox, Ryan Bourne - Wednesday, 14th March, 2012