October 14, 2009 at 06:42 AM
I heard him speak at Manchester - it is great that someone of his experience and clear thinking is available to the Tories to lead our efforts in creating the right environment for business.
He has clearly got the point re competitiveness and promises to cut back administration and reporting requirements for businesses. What else must he do?
The UK's tax competitiveness must improve. For the UK to remain as a global business centre, we need to see the Corporation Tax rate down from 28% to 18% or even 15%. The Laffer Curve applies here more than anywhere; a lower tax environment will atrract so much new business that the total tax revenue will actually increase after a notional rate cut.
Repairing our banking system, and its reputation, is a priority. Bashng the banks was so 2008. A grown up Government will recognise the strategic importance of our banking system and the City of London and will assist those remaining banks properly to manage risk. Capital requirements should be flexible; higher in the growth years, lower during decline.
Finally Clarke must oversee a huge financial and vocal support for enterprise and industry. Helping to make sensible credit available is part of that. Remembering that our manufacturing output is still the third highest in Europe is another. A final part is to acknowledge that the UK has, in the past, created the conditions for global entrepreneurs to thrive; those conditions must be created again.
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