Policy Area: STIMULATING THE ECONOMY                                                                                                          Date of Discussion: 25.10.12


The discussion was about how to stimulate the UK economy.  It was a very lively discussion ranging over many areas.  The summary does not do justice to all the ideas that came out.

Discussion Conclusions:

  1. Agreed that it is hard to measure GDP, estimates are published too early allowing the press to ‘spin’ the message.
  2. Work ethic in UK people, especially the young, is weak.   It is too easy and often beneficial to stay on benefits rather than take a job.
  3. Education is failing young people. 
  4. UK is superb at product innovation, but loses out on production.  New products should be taxed at a much lower rate e.g. The new Patent Box will reduce the corporation tax on patent profits to 10% by 2017; however, the rate is already 5% in Denmark.
  5. Many companies have spent more time making a ‘quick buck’ by manipulating the company structure – selling parts of the company, taking over other companies – than making anything.
  6. Many older companies are being destroyed by their pension legacy.   Auto-enrolment of pension schemes is a new burden when companies are already struggling.
  7. The recession is uneven.  It is only in some sectors and some geographic areas.  Regional policies are needed for the badly hit areas
  8. Public employee numbers have not been reduced enough.  Public sector pay and pensions are too high.
  9. Short term and long term plans are needed.  Wind power is uncertain and should be given less incentive, tidal power should be developed.
  10. Long term plans are difficult with 5 year parliaments; this is no excuse for not making such plans.  The Olympics worked because there was a deadline.  Deadlines must be set for other important areas – energy, transport.  Issuing long term contracts can set the plans so that they cannot be continually amended.
  11. It is important to get lending available for companies.  More competition is needed in banking.
  12. A system such as Chapter 11 is needed to allow negotiation with creditors without going into administration.
  13. There was unanimous agreement that excessive regulation is strangling companies.   Most regulation is ineffective box ticking, get rid of it.
  14. Planning regulations looked at as a way of making money.

Political Discussions

At least twice a year members of The Tandridge Club meet to discuss a a wide range of topics. Following the discussion a paper is produced and sent to our MP so that he can take our recommendations forward to the relevant Government Department. You can read a summary of the Stimulating the Economy paper below. For a full copy please Contact Us.