By Claire West

Responding to Nick Clegg’s speech on growth last week, Mark Littlewood, Director General of the Institute of Economic Affairs, said:

Nick Clegg’s plans for growth are remarkably unambitious. We keep hearing promises of reductions in regulation, it’s time to deliver.

“The focus shouldn’t be on balancing growth across sectors and regions, but on allowing businesses to decide which sectors and regions will work best for them to invest in. The more government can do to get out of their way the better. This constant skewing of the landscape creates too much uncertainty for those trying to run businesses and is stifling innovation.

“Radical changes are needed, from reductions in tax to moving away from national pay bargaining. Unless the government makes deeper cuts, reforms our tax system and dramatically reduces regulation it will fail to deliver on the growth agenda.”

The CBI have also commented on UK growth, predicting a that a 'sluggish' 2011 will be followed by restrained growth in 2012.