Bosses call for less tax and public spending from central government

Most company directors believe the government could do more to encourage business growth.

The Institute of Directors (IoD) has called for a “radical shift” in policy to boost the size of the economy in the long term.

In its Budget submission, the IoD said new economic targets on growth and spending should be introduced, and monitored by the Office for Budget Responsibility (OBR).

IoD director general Simon Walker said: “When you strip down future prospects for the British economy two problems are laid bare. Long-term growth is too slow and the government is too big.

“We need to tackle both issues and that means targeting them explicitly and charging the OBR with the job of saying whether or not government policy is making the long-term economic outlook better or worse.

“We can’t sit still any longer – 91 per cent of company directors think the government could do more to encourage business growth. We need a supply-side revolution with less tax, less public spending, fewer regulations and less burdensome employment law. The time for tinkering on the supply-side is over.

“One in two company directors think GDP growth over the next decade will be lower than over the past decade

“Without radical reform we risk a lost decade.”