Monday, July 9th 2012, 5:30 AM EDT
The think tanks, including the Centre for Policy Studies and the Institute of Economic Affairs urge the Prime Minister to develop a new "strategy for sustained higher long term economic performance".
It comes amid widespread concern among rightwing Tory MPs that the Liberal Democrats are exerting too much influence on the Coalition. There is also growing unease about the performance of the Chancellor George Osborne, after repeated about-turns following March's Budget.
In a letter published in today’s The Daily Telegraph, they tell Mr Cameron to “adopt a coherent and realistic energy policy” based on rapid development of extracting gas by the controversial method of ‘fracking’ as well as coal and nuclear power plants.
The think tanks say: “The Coalition deserves praise for convincing the international markets that it has a credible deficit reduction plan. But that is not enough. What is needed now is a strategy for sustained higher long term economic performance.
“Central to this purpose is the determined implementation of infrastructure projects, irrespective of whether they reflect promises made before the full onset of the present emergency.”
The letter is signed by Tessa Keswick, deputy chairman of the Centre for Policy Studies and Mark Littlewood, director general of the Institute of Economic Affairs, among others.
The think tanks also urge ministers to “stop building wind-farms and repeal (or suspend) the Climate Change Act”, and abandon the multi-billion pound high speed rail link between London and Birmingham.
Other suggestions include removing “all barriers to private sector development of a reliable, modern internet system, liberalise the development of a reliable water network with adequate new reservoirs” and “veto the EU budget until it is cut”.
The plans “coupled with the exemption of small businesses from employment regulation” would not cost the Government a penny.
They say: “Taken together, they would not involve additional public spending; nor should they involve PFI-style financing gimmicks.
“Rather, it is a matter of transferring resources from unproductive projects to wealth creation and the delivery of essential infrastructure. The alternative is continuing stagnation, based on token cuts of recurrent entitlements and real cuts into the backbone of Britain’s future.”