The former chancellor, Sajid Javid has warned against a return to the austerity that the UK economy struggles with the effects of the sars coronavirus crisis.
In a report by the Centre for Policy Studies, he called for lower taxes on businesses to help the UK recovery.
The think-tank conservative, which was co-founded by Margaret Thatcher, has declared that it should be based on ” a dynamic private sector, and lower taxes. ”
Labour has said that the government should be offered more generous support.
The report of the think-tank, said that the rapid economic rebound from the sars coronavirus crisis is not likely.
But he said coronavirus emergency spending measures should be stopped, if possible, in April 2021.
He said that the polls indicate that the u.k. is “not ready” to return to the austerity measures imposed by the former chancellor, George Osborne, ” is good to they were.”
Instead, the report calls for the tax to shift profits and income, and toward a reformed property tax and the tightening of tax relief ” that unduly favour the rich “.
National insurance should be given a “temporary” reduction to make it less expensive for employers of staff.
The former minister, who resigned from the Treasury in February, said: “early hopes of a recovery in” V “” a ” proved optimistic “.
He predicted that “some long-term damage to the economy “had become” unavoidable “, with no fewer than 2.5 million people without work because of the Covid-19 lock.
But to speed up the rate of people re-entering the labour market, Mr Javid argued in the Following that The Virus report, published Tuesday, that the ministers should make it easier for businesses to hire workers.
“If we want to support and stimulate employment, then axiomatically the best option is to cut the payroll tax of employer’s National Insurance,” Mr Javid said.
“The tax employment less, and all other things being equal you will end up with more of it. ”
Other recommendations made in the report include a temporary cut in VAT and bringing forward ready “infrastructure projects, with Mr Javid saying that” the only way out of this crisis of growth “.
He joined the companions of the former chancellor Alistair Darling, calling for an emergency VAT cut to stimulate consumer spending, a movement initiated by the Work of the peers after the financial crisis of 2008.
Mr Javid, said: “If we want to ensure the best recovery possible, it is essential that nothing is left to chance. ”
The Labour Party, in a report published in March on the economic effects of coronavirus, has criticized the government for acting too slowly and said that he must take a larger proportion of wages for those who lose their jobs