Brown's policies 'are wrong'

12 April 2012

Chancellor Gordon Brown is set on "exactly the wrong policy response" to meet Britain's key challenges of globalisation, new technology and an ageing population, a thinktank report has warned.

The Reform report argues that the UK's success in the coming decade depends on low taxation and high-quality education, driven by reforms to make the school system more flexible, extend parental choice and bring in new providers.

Instead, the report predicts that Mr Brown's Comprehensive Spending Review this summer will put the UK on a path of higher taxes and extended compulsory education.

The UK is already "very badly placed" for the future, and the Chancellor's expected approach would "make a grave situation worse" by reducing its international competitiveness and lowering educational standards, say the authors of the report UK Growth and Opportunity, the Need for a Fundamental Reassessment.

Mr Brown's target-led approach to education is expected to involve extending compulsory education to 18 at a cost of £2 billion a year, increasing spending on state school pupils to independent-sector levels at a cost of £18 billion and massively increasing state-providing training, the report predicts.

But it argues that the Government's focus should instead be on ensuring that all pupils reach the basic level of education of five good GCSEs, including English and maths, that will provide entry to the modern skills-based economy.

The report recommends a "growth rule" that public spending should be brought down to 35% of GDP within two Parliaments, along with a programme of phased tax reductions.

One of the report's authors, Professor Nick Bosanquet said: "The Treasury has the right analysis of the challenges facing the UK, but absolutely the wrong answers. Heavy public spending increases have already gone a long way to mortgaging the future of a generation who will have to pay for enlarged public spending as well as for their own pensions and higher education.

"Further tax increases will increase the pressure on young people and middle-income families without helping the poorest groups. The real road to growth and opportunity lies in empowering individuals to invest in their own futures."

And co-author Andrew Haldenby added: "Politicians in all parties are looking for a new policy agenda to meet the challenges of the next decade. They can find it in low taxation, to strengthen economic growth, and education reform, to widen opportunity. These are the minimum requirements of a modern political agenda."

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