11 September 2007 | Paul Snell
The UK needs a dramatic reform of its supply market to remain competitive internationally, according to the Conservatives.
In a speech on globalisation at the London School of Economics yesterday, opposition leader David Cameron said the government was "moving in the wrong direction" to make Britain's suppliers competitive. He repeated concerns recently expressed by the Institute of Directors that Britain was becoming less competitive, and had fallen from fourth to tenth worldwide.
"To stimulate economic growth in the new global economy, dramatic supply side reform is required," he argued. "Government must regulate and tax enterprise less. But Britain's competitiveness is not simply a matter of government getting out of the way. It must also do more to secure the skills, energy and transport infrastructure that will help us compete."
He said that a radical simplification of business taxes and proposals to make it easier for new businesses to win government contracts would help with this.
He was also critical of the Treasury, saying it had lost sight of its "single most important role - delivering value for money", because of increased centralisation imposed by the government.