Digby Jones, the director general of the Confederation of British Industry (CBI), has said he hoped Wednesday’s Budget is one of the most “boring” in recent years, amid business fears of damaging tax rises.
In a last-ditch plea to chancellor Gordon Brown, Jones stressed that UK firms needed a steady, uneventful Budget to aid their recovery from the recent economic downturn.
Business groups have lined up in recent weeks to call on the chancellor to not raise taxes on companies to help fill the ‘black hole’ in public finances, caused by increased spending on schools and hospitals.
Jones said that he sincerely hoped that this will be one of the most “boring” Budgets the chancellor has ever delivered.
“It should be low-key, uneventful and without surprises. The economy is only just starting to motor along quite nicely after a long period of sluggish growth and the public finances remain under real pressure.
“This is a moment to keep a steady hand on the tiller, not to launch costly headline-grabbing initiatives and knock progress off course.
“It is certainly not the moment for further damaging increases in the business tax burden. Where he can Mr Brown should spend on further measures for encouraging innovation and enterprise over the long-term.
“He should also show that over the medium-term he plans to simplify the tax system and made it less burdensome.
“But other than that we believe that major changes would be a big mistake,” he said.
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