In efforts to boost economic growth whilst cutting the overwhelming national deficit, Chancellor George Osborne is considering a number of options. The problem he is presented with is how to boost the economy whilst striking to rigid austerity plans as it appears to be a contradiction in terms.
According to a minister speaking with the BBC on Sunday, the chancellor is contemplating a number of things which the UK could be doing to give the economy a much needed ‘push.’ As the minister phrased it, this would be a “kick-starter” of sorts.
When speaking with the press, Iain Duncan Smith noted that there is a growth strategy in place which is currently being reviewed by the chancellor. Smith says that both the chancellor and the business secretary want to be certain that what is being done is on the right track.
With an economy that has, for the most part, been stagnating over the past 12 months, there is increasing pressure on the chancellor to ease up a bit on his austerity programme which has the end goal of reducing UK deficit based on a percentage of the GDP.
One of the things being investigated is just how efficient the top tax rate of 50% really is even though withdrawing the measure could mean heated opposition from Liberal Democrats. Among measures already in place, Duncan points out ways in which government is looking at work and/or apprenticeships for young people and small business tax breaks.
As government announced in June, they would also be looking at ways in which to promote greater investments in government infrastructure but at the same time, government is taking heat over their plans to “shake up” building permissions and the building planning system. In the end, government contends that risks are needed to support growth.
