Business leaders warn next UK Government: either shrink the state or risk economic ruin

One of Britain’s most powerful trade bodies has warned that the winner of the next election must be prepared to reduce the size of the Government immediately or risk economic problems for a decade.

Louise Armitstead
Telegraph [UK]

The Institute of Directors used its annual conference in London to criticise all of the political parties for failing to produce policies that will adequately tackle Britain’s economic problems.

Speaking ahead of Thursday’s crucial televised debate on the economy, Miles Templeman, director general, said: “We’re a week from the General Election but we’re still years from bringing the deficit and the size of the Government under control. If the truth be told, no political party is advocating the scale of spending and deficit reduction we need, not just for the next few years, but for the next decade.

He added: “If British business is to compete effectively in the 21st century we need a fundamental root and branch reform of the state. Government has got to get smaller and better. Unless we shrink the state, the state will shrink the economy”.

At the conference, George Osborne repeated the Conservative plans for fast spending cuts but admitted that the party would have to do more if elected next week. The shadow Chancellor repeated his pledge to make £6bn [$9.1 billion US] efficiency savings this year but he added: “I don’t want to pretend to you that is all we are going to have to do. You know that the next government is going to have to do a great deal more if we are to deal with the deficit.”

The article continues at the Telegraph.

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