U.K. Chancellor of the Exchequer George Osborne needs to come back from the summer break with a new approach to deal with the continuing financial crisis, Richard Lambert wrote in the Financial Times.
The government must demonstrate its commitment to bring the deficit under control by “reinforcing a series of bold structural reforms” in such areas as “pensions policy, planning and benefits,” the chancellor of the University of Warwick wrote.
The government has “to give business the confidence it needs to make major investment, which means above all ending the policy uncertainty in critically important areas such as energy,” wrote Lambert, a former director-general of the Confederation of British Industry.
Osborne’s policies must reflect the short-term requirements of the economy and the long-term needs of the country through “a series of one-off fiscal initiatives designed to boost demand,” Lambert wrote.
The former Financial Times editor endorsed a suggestion of the International Monetary Fund that called for temporary tax cuts for lower-income households and he said that support for the construction sector would be a “sensible” policy.
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