UK Economy: Top 5 Radical Ways To Save The Economy

The Huffington Post UK  |  Posted: Updated: 21/05/2012 11:26

Uk Economy
The UK economy could be in need of some radical thinking in order to recover

Business leaders have suggested a single 30% rate of tax be introduced in the UK, in what is the latest piece of advice to help boost the nation's struggling economy.

The 2020 Tax Commission report, a joint venture by the Institute of Directors and the TaxPayer's Alliance made the suggestion on Monday, weeks after Britain was declared to be back in recession.

The reforms would see national insurance contributions and stamp duty abolished, and the introduction of single, flat rate and the report claims that a two-earner household with an income of £28,000 would save £3,400 a year in tax.

In the world of business, corporation tax and capital gains tax would be replace by a 30% rate on dividends, interest and rent.

This may seem like a radical idea to boost the economy but there have been far more bizarre suggestions for how to revive economies across the world.

Whether it's a Tory donor wanting to scrap employment laws or a billionaire businessman advocating the legalisation of drugs to boost the Spanish economy, radical ideas are sometimes the best way to instigate conversation and inspire new ideas.

But which are five of the most radical? Click through our slideshow below to find out...

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  • Steve Hilton: Scrap Maternity Leave

    Until recently a strategy director for Prime Minister David Cameron, Steve Hilton is notorious for his 'blue sky thinking' ideas. Hilton once suggested to Cameron that the Tories <a href="http://www.telegraph.co.uk/news/politics/david-cameron/8667058/David-Camerons-senior-adviser-Steve-Hilton-suggests-UK-should-abolish-maternity-leave.html" target="_hplink">abolish maternity leave in order to save the economy.</a> His theory was that maternity leave rights were "the biggest obstacle to woman finding work".

  • Richard Branson: Save Spain By Legalising Marijuana

    Sir Richard Branson is known as a progressive figure in the world of drug policy, often calling for lighter sentencing and decriminalisation of some drugs. <a href="http://www.rawstory.com/rs/2012/05/11/richard-branson-says-spain-can-solve-its-economic-problems-by-legalizing-marijuana/" target="_hplink">Opening the world's largest cannabis museum in Barcelona, and receiving a Cannabis Culture Award earlier in May</a>, Branson suggested that legalising the drug could "help the country to get back on its feet." He referenced a nearby town, Rasquera, which rented some of its land to cannabis growers in order to boost its local economy. "It seemed like a great idea to me," he said.

  • BBC: Britain Should Think More Like The Germans

    The BBC's Matthew Taylor wrote in March that the UK can learn lessons on economic responsibility from Germany. <a href="http://www.bbc.co.uk/news/business-17213556" target="_hplink">In particular, their attitude towards apprenticeships and the importance of manufacturing as an industry could serve the UK very well.</a> Taylor also spoke with a former German minister, living in the UK, who was surprised by British spending philosophy. "If Germans don't have money they don't spend," former families minister Claudia Crawford told Taylor. "It was a great surprise for me coming to London to learn if you haven't money to spend you get another credit card."

  • Adrian Beecroft: Slash Employee Rights

    Tory donor Adrian Beecroft's ideas on reforming employment law threatened to strip back decades of workers' rights. Among Beecroft's ideas for reviving business centred around making it easier to sack employees, as well bringing in a default retirement age, cutting redundancy notice periods, capping payouts at tribunals, and bringing in more staff from overseas without having advertised within the UK.

  • Ohio, USA: Solve the Housing Crisis By Demolishing Houses

    The town of Lakewood, Ohio is one of thousands of American towns struck by the recession and a failing housing market. Their solution? Knock down hundreds of houses. The town's plan was to increase demand for their available houses, raising property prices. <a href="http://www.time.com/time/magazine/article/0,9171,2090368,00.html" target="_hplink">Time, reporting on Lakewood's strategy, wrote that:</a> "Razing houses, officials say, will increase competition for the remaining homes, driving up real estate values. That, in turn, will make it easier for homeowners to refinance to cheaper loans, freeing up spending and boosting consumer confidence."

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