Jeremy Hunt will put scrapping EU red tape at the heart of a growth plan this week, as he outlines proposals to unlock £100billion of investment.
The Chancellor will use a major speech tomorrow to insist he is serious about boosting economic growth, despite being against tax cuts in the March Budget.
He will pledge to ditch the so-called Solvency II rules by summer, with Treasury sources saying the move could unlock £100billion in private sector investment over the following decade.
And he will suggest that a wider bonfire of EU rules this year could help boost productivity and growth. Ministers are pushing ahead with plans to review all EU laws still on the UK statute book this year, potentially consigning thousands of regulations to the scrap heap.
The Chancellor will pledge to tackle the ‘declinist narrative’ peddled by Labour, highlighting the ‘good fundamentals’ of the economy, and Britain’s competitive edge in key industries of the future.
But he will acknowledge the need to improve skill levels and encourage more people back into the labour market.
And he will warn that the tax cuts demanded by business and many Tory MPs will have to wait until inflation has begun to recede.
A Treasury source said that the Chancellor would stress his commitment to bringing down the UK’s record tax burden in the longer term but will warn it ‘can’t happen now’, due to the need to tackle inflation and bring borrowing under control.
Source of data and images: dailymail