I travelled in the eastern part of Germany this year and was deeply impressed by the reconstruction taking place. Again and again I speculated on the mechanisms producing the investment, and asked myself why the same could not be done in Britain. Since my return I have seen some of the German government documents (published in English) on the investment incentives employed. I believe such measures should be used in this country - generous, and early, capital allowances; loan guarantees; interest rate support; fixed-condition loans; tax 'holidays', or a period of reduced tax, for new enterprises - a package of measures like these to encourage investment towards the creation of employment in appropriate parts of the country.
The employment created will contribute towards the cost of the incentives with tax revenue replacing benefit costs.
22 OctoberReuse content