The time is up on current policy thinking

The news that the Government still seems wedded to their aim to tax small businesses on their parking spaces suggests to me that we need to start thinking about policy in a different way.  This legislation is indicative of a desire to merely recoup reserves that had been spent out on projects and have now been used to prop up the economy.

This is a sub-optimal strategy based on a question along the lines of what can we tax and much like the Window Tax of Wordsworth’s era, will end up with boarded-up windows… this time of businesses.

Rather than focusing on recouping reserves, the policy makers, whose names should appear against their creations in my view, would do better to focus on a more holistic question, for example:

How do we get UK PLC to be super competitive in the new global economy?

A project working down through our economy from this high-level question will of necessity create a very different legislative focus and structure.  

By posing this question, policy makers would be forced to determine where they can nurture innovation and creativity, how they can get fuller utilisation and efficiencies from the available workforce and what unique competitive advantages we have that our competitors, other economic states on the global stage, do not.

My intuition is that the result of this thinking will not be yet another distraction which hinders the owners and managers of SMEs.

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