IoD calls on next government to cut business tax and impose ten-year freeze on spending

David Watt: issues must be addressed if UK is to compete

SCOTTISH business leaders have issued their own General Election manifesto, calling for a ten-year real-term freeze on public sector spending and cuts in business tax and red tape.

The Institute of Directors Scotland has also urged the incoming government to pass an emergency Budget to tackle public debt to boost competitiveness.

It believes the measures set out in today’s manifesto are vital to tackle the “malaise” hanging over the Scottish and UK economies.

IoD Scotland executive director David Watt said: “Regardless of who forms the next government these are the issues that need to be addressed if we are to pull ourselves out of our current predicament and show that we are serious about remaining competitive in the future.”

The manifesto calls for more co-operation between the UK and Scottish governments in areas where responsibility is split, including transport, energy and pension reform.

On public spending, the IoD says a ten-year freeze in real terms on public spending except for key infrastructure projects is vital to reduce the deficit.

The manifesto also urges a “no-strings” and steady reduction in corporation tax rates down to 15 per cent, along with a reversal of the planned 1 per cent rise in National Insurance rates.

The IoD also calls for a major reduction in regulation to make it easier for firms to take on staff, including an immediate halt to new employment laws. And it suggests introducing a minimum deposit of 500 for cases taken to employment tribunals to deter weak cases and “no win, no fee” lawyers.

On pensions, the manifesto argues the state age needs to be raised to 70 “as soon as practicable”, although conceded arrangements would need to be made for those in manual occupations unable to work that long.

“The idea that either state pensions or private saving can support a 25- to 30-year retirement from an effective 30- to 35-year working life is unsustainable,” it says.

• UK chief financial officers believe there is a one in three chance of a double dip recession, according to a survey published today. The Deloitte CFO Survey also found more than 80 per cent of finance chiefs see reducing the public debt as the main priority for the next government and over 90 per cent say a hung parliament would be bad for the economy.