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The only way to make government more efficient is to make it smaller and to make it more local.

The government would also be wise to press on with its further measures to promote growth, as it will want to outperform the low figures in this outlook. This will mean delivering measures to ease money and credit and to stimulate demand.

When ministers in this government talk about investing in education and skills, about making the planning system work; about employment law reform and delivering transport and power generation and broadband communication infrastructure, we are talking about raising Britain's productivity.

Politicians are good at saying how Government must do more, but we must also think carefully about where Government should do less.

Instead of raising taxes as some would insist, we need to reduce waste and inefficiency in government.

You need to be intent on reducing size, scope, and influence of government.

Governments will always play a huge part in solving big problems. They set public policy and are uniquely able to provide the resources to make sure solutions reach everyone who needs them. They also fund basic research, which is a crucial component of the innovation that improves life for everyone.

The dual effect of high growth creating higher income that's taxed by government at all levels, combined with lessening demands placed on government that occurs during economic prosperity, is a worthy objective.

Simplifying the tax code and reducing administrative burdens will save small businesses money and time and let owners and employees focus less on paperwork and more on how to operate in this tough economy.

'Simplifying' the tax code is a priority mainly for people who make enough money to want to avoid paying taxes, and who make their money by means unorthodox enough to make avoiding taxes possible and desirable.