Tuesday, 8 June 2010

The new coalition government has a difficult tight rope to walk over the coming months, on one hand the deficit in public spending must be reduced – spending cuts and higher taxes will probably both be necessary. On the other hand the Government needs to be careful not to jeopardise the UK’s position as a global investment hub. The Budget on the 22nd of June must be carefully balanced to protect this, while delivering a tax system that is fairer to the less well off.

My suggestions for the government are:

The UK is more often than not either the largest or second largest source of investment in Commonwealth Countries. In return the UK is often the destination of choice for other Commonwealth countries outbound investment flows. This privileged position needs to be protected.

Government expenditure needs to reduced, there are many tasks currently undertaken by the public sector that the Private can deliver, particularly in international aid.

While I was pleased to hear in the Prime Minsters speech this morning that international aid is to be ring fenced, there is a need to refocus what it is spent on. Aid should be spent on improving the receiving countries ability to attract increased private sector investment that will promote job and wealth creation, creating a sustainable economy.

Finally the UK must preserve its Global Comparative advantage; it should implement a mechanism that attracts highly skilled and professional migrants to the UK.

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