Long-term jobless take a 20% dole cut and work in the community Kwasi Kwarteng, the chairman of the Free Enterprise Group, said: "These are some dynamic and thoughtful ideas which we believe will get the British economy going in the next few years. Fostering free enterprise through reforming public spending, cutting taxes and getting the welfare budget under control needs to be at the heart of our political agenda. The manifesto will add to pressure on Coalition ministers including Vince Cable, the Liberal Democrat Business Secretary, to deliver more business-friendly policies. Britain sank back into the second leg of a double-dip recession earlier this year. Official figures published later this month are expected to show that the economy grew slightly during the third quarter of this year, but the outlook for next year remains bleak due to the Eurozone debt crisis and the dire state of Britain's public finances. The policies will be launched in a joint event hosted by the Free Enterprise Group and the Institute of Economic Affairs, the Right of centre think tank, at an event in Birmingham on Tuesday. Devising ways to get the long-term unemployed into work remains one of the greatest challenges of welfare reform. The Free Enterprise Group recommends that the jobless should have 10% of their Jobseeker's Allowance removed after six months, with another 10% withdrawn if they remain out of work after a further six months. Such a move would raise eyebrows amongst Liberal Democrat members of the Coalition who would almost certainly seek to block the proposals. Those under 25 currently receive £56.25 a week under Jobseeker's Allowance. This rises to £71.00 a week for the over 25s and £111.45 for couples. A senior Liberal Democrat source said: "I wonder sometime what planet many of the Tory Right are living on. They did not win the last election. They are in Coalition and with people who understand how much damage polices like this would do. The paper also proposes allowing a company's first 12 employees to be treated as self-employed for tax and employment law purposes. This would encourage more people to set up their own companies and take the risks necessary to fire economic growth, the report's authors claim. Other pro-growth policies recommended in the Free Enterprise Group's manifesto include: The planning system should be further reformed to allow the rapid building of new runways at Heathrow and other airports. A new scheme should be developed to allow developers to negotiate compensation packages directly with locals affected by developments. Anti-strike laws should be toughened to block strikes by transport and emergency services workers. A new generation of selective grammar schools known as "excellence academies" should be created, allowing gifted children from poor backgrounds to receive a first-rate education. Introduce legislation to oblige future governments to balance their budgets. Chris Skidmore, the Conservative MP for the west country constituency of Kingswood who part-wrote the report, said: "Now is the time for the Conservative party to be brave. We need bold thinking and ideas that reflect the fact that we are the party that believes people should have the freedom to make the decisions about the things that affect them.