View more on these topics

Tory MP David Davis calls for ‘bonfire of regulations’ to boost growth

London UK Thames Parliament 480

Prominent backbench Conservative MP David Davis has called for a “bonfire of regulations” to boost growth and lift Britain out of recession.

In a wide ranging speech to the Centre for Policy Studies, There is an alternative: Why the Government needs a growth policy, the former Tory leadership candidate outlined his plan for economic “shock therapy”. It includes slashing regulation, a radical overhaul of banking and a pledge of no new tax rises.

Davis, who is seen as a torch bearer for the right wing of the Conservative party, said: “Today what is needed is a modern shock therapy for our economy, to jolt it out of its torpor. When one of the possible futures facing us is decades in the economic doldrums, what looks risky may in fact be the safest course.

“Indeed my only criticism of the deficit reduction policy is not that it is too fierce, but that if anything it is too little too late.”

Davis said the biggest “growth-killer” in modern economies is regulation, especially employment laws.

He also said the country can not tax its way to prosperity and hit out at Liberal Democrat plans for a wealth tax, as proposed by deputy prime minister Nick Clegg last week.

He sayid “Income taxes, employment taxes, capital taxes, sales taxes, are all too high and too complex.

“Let’s start with the easy part – there must be no new taxes. Yes, I’m talking to you, Mr Clegg.

“You have to make a decision, you either punish the rich or you harness their energy, their talent and their resources to benefit all of society. We cannot do both.

“Punishing the rich is politically profitable but can be economically disastrous.”

Davis also lamented the decline of local banking making local decisions and blames it on barriers to entry for new banks.

He said: “We need to make it easier not harder to start a new bank. We need to tear down the barriers to entry in banking, and reverse the policy of the last decade which has effectively excluded banking from competition law, in a sad misunderstanding of the role of the financial sector in the modern state.”


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. A politician with some sense? thats novel but refreshing. A good start would be to revamp FS regulations to make them sensible, fair and in line non retrospective. All reasonable advisers recognise and agree that regulation in our profession is a good thing – it just needs to be sensibly run with clever and innovative leadership with fairness & common sense at the top of the agenda. The regulators may be pleasently surprised how much better the entire profession would be if this was implemented. Work with the industry to be better not try being peoples champion at all costs.

  2. “Bonfire of regulation”

    If only !!!

    I dream of such things, it would be nice to wake in the morning and fill my lungs with freash air !!!

    Rather than the stale stench from the ash tray of regulation.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm