IoD calls for QE2

The report outlines 15 proposals which it says “could make the UK one of the most competitive advanced economies in the world by 2020-25”.

The IoD also wants to see the top rate of income tax cut from 50% to 40%.

The report was launched by Simon Walker, director general of the IoD.

Walker said: “No aspect of economic policy is more important than returning Britain to a growth trajectory.

“Without the belief that UK economic growth is expanding, confidence will wane, international investment will decline and British consumers and taxpayers will be left picking up the crumbs at the tables of faster growing competitors.”

Walker added that the government’s deficit reduction programme was a step in the right direction.

“But it must go faster and further before the economy is on track and prosperity returns,” he said.

Minutes of the Bank of England’s last Monetary Policy Committee meeting indicated that the Bank was looking at the possibility of more QE.