F4 Liberal Democrat Economic Policy

i)

Individuals, small and family businesses and community enterprises form the majority of the British economy, and we should nurture and support them at least as much as big businesses. Economic growth in the UK will come from innovation and creative disruption of the status quo.

ii)

The Conservative Party have become the party of big business, in particular big banking; have weakened Britain in particular by making us more dependent on big energy imports; and no longer support individual opportunity.

iii)

The Labour Party is the party of big state spending, big public sector and big union power and is equally unable to support individual opportunity.

iv)

The Liberal Democrats are the Party of Opportunity for all.

v)

Free trade, including free movement of people, has been proven to be key to economic growth and prosperity for both trade partners and we should encourage global trade & cooperation which will help create a more balanced UK economy and place the UK in a more significant position within global production networks.

vi)

We must ensure the economy is both environmentally and financially sustainable, and not leave our debts and damage for the next generation. We must build a zero carbon Britain and clear the government's current account deficit during periods of growth with fair tax rises and spending cuts.

vii)

We want every region of the country to be a powerhouse. Power and money should be controlled by the regions in genuine devolution settlements to make that happen. We call for fiscal devolution so devolved areas can set their own tax levels, not for money to be handed down from central government. We support the choices of the Scottish and Welsh Liberal Democrats in their national governments.

viii)

We must make Business Rates work for both business and local communities, allaying fears of revaluation (currently due 2017) and assessing the impact of the Chancellor’s proposals to let councils keep 100% of the tax raised to see that areas with lower Business Rate base (i.e. where the Business Rate raises less income) do not lose out, and that councils setting business rates leads to healthy competition not a race to the bottom.

ix)

There is a place for businesses of all sizes in the UK economy, so we must make those businesses – large and small – work better for their people – employees as well as shareholders – by:

• continuing to expand support and protection for workers within organisations;
• by tackling benefits rules that penalise workers for leaving bad employers;
• by continuing to improve opportunity through education and apprenticeships;
• by boosting participation, working to eliminate discrimination, and encouraging forms of companies and partnerships that give the fairest distribution of profits;
• and by supporting Corporate Social Responsibility that encourages greater benefits to society and empowers social entrepreneurship.

x)

We must introduce measures to empower every British citizen in business by:

• local or national government directly through purchasing, investment or grants where appropriate;
• by increasing access to capital by breaking the big banking monopolies and supporting new local banking, credit unions and new forms of capital lending;
• by supporting innovative economic forms such as the sharing economy and crowdfunding;
• by simplifying the over-complicated tax system and shifting the burden of taxes more fairly to large corporates and unproductive wealth;
• and by breaking down regulatory barriers to entry for challenger-firms that will grow rapidly and creatively disrupt business practice.