Why do these discussions always focus on taxation and spend and never what the government should do to grow the economy. The latter should always be the focus rather than trying to redistribute a shrinking pot. I would suggest:
A) Making work pay and reduce very high effective marginal tax rates caused by the interaction of income tax, National Insurance and withdrawal of benefits.
But combined with the following productivity measures:
B) Reform planning by moving more towards a rules based planning system, if a development meets clear criteria, it should normally be approved. Set clear time limits for major planning decisions.
C) Build infrastructure consistently - set out a 10–15 year national infrastructure pipeline
and give businesses confidence to invest around major infrastructure projects. Use UK procurement rules to favour British companies and supply chains.
D) Raise productivity in ordinary businesses e.g. create a national SME productivity programme linked to actual investment and measurable improvements rather than simply providing grants.
E) Reform apprenticeships and adult training towards skills employers actually need.
F) reduce economic inactivity through better occupational health, retraining, childcare, flexible employment and effective back-to-work support combined with the measures in A.
G) Better support to turn more British research into high-growth companies, jobs and exports.
H) Stability - give businesses confidence that the rules will remain broadly stable to encourage long term investment.