Menu
07/11/2005
Chancellor urged to cut pubic spending
Employers’ organisation the CBI has urged Chancellor Gordon Brown to cut back on public spending plans.
The CBI said that the government needed to tackle a £10 billion structural deficit in public finances within the next two years. In order to bring public sector finances back under control, the CBI said, the growth of total spending should be constrained over the next two years to £51.4 billion – in line with GDP growth and still ahead of inflation – rather than the £61.4 billion planned.
The Chancellor is due to publish his forecast in the Pre Budget Report later this month.
CBI Deputy Director-General John Cridland said: “Whilst the Chancellor can shift the fiscal goalposts and delay the Comprehensive Spending Review, tackling the structural deficit can only be deferred, not ducked forever.
“The prudent decision would be to reconsider the government’s spending plans for the next two years and get a grip on the deficit now.”
Mr Cridland also warned that further tax rises would be “extremely damaging”, because economic growth is slowing down.
The CBI called for a cut in the general business tax burden before 2010, saying that UK companies and investors had paid more than £50 billion extra as a result of Budget policy decisions.
The employer's body also called on the government to continue with the reform of corporation tax and strongly criticised tax measures being introduced under an ‘anti-avoidance’ banner by the Treasury.
Recommending that savings could be made by holding back public sector pay rises, cutting absenteeism and tackling fraud and error in the benefits system, the CBI said that spending on education and skills, transport, science and technology and innovation and support services for trade and businesses were “vital for the economy’s long-term prospects” and should be protected.
(KMcA/SP)
The CBI said that the government needed to tackle a £10 billion structural deficit in public finances within the next two years. In order to bring public sector finances back under control, the CBI said, the growth of total spending should be constrained over the next two years to £51.4 billion – in line with GDP growth and still ahead of inflation – rather than the £61.4 billion planned.
The Chancellor is due to publish his forecast in the Pre Budget Report later this month.
CBI Deputy Director-General John Cridland said: “Whilst the Chancellor can shift the fiscal goalposts and delay the Comprehensive Spending Review, tackling the structural deficit can only be deferred, not ducked forever.
“The prudent decision would be to reconsider the government’s spending plans for the next two years and get a grip on the deficit now.”
Mr Cridland also warned that further tax rises would be “extremely damaging”, because economic growth is slowing down.
The CBI called for a cut in the general business tax burden before 2010, saying that UK companies and investors had paid more than £50 billion extra as a result of Budget policy decisions.
The employer's body also called on the government to continue with the reform of corporation tax and strongly criticised tax measures being introduced under an ‘anti-avoidance’ banner by the Treasury.
Recommending that savings could be made by holding back public sector pay rises, cutting absenteeism and tackling fraud and error in the benefits system, the CBI said that spending on education and skills, transport, science and technology and innovation and support services for trade and businesses were “vital for the economy’s long-term prospects” and should be protected.
(KMcA/SP)
Related UK National News Stories
Click here for the latest headlines.
13 July 2004
Spending review sees civil service bear cost of public spending rise
In yesterday's spending review, the Chancellor set out government plans for putting extra money into frontline public services - investment that would be freed up from downsizing the civil service. Gordon Brown said that there will be a real terms rise in funding of 4.2% for each of the next three years.
Spending review sees civil service bear cost of public spending rise
In yesterday's spending review, the Chancellor set out government plans for putting extra money into frontline public services - investment that would be freed up from downsizing the civil service. Gordon Brown said that there will be a real terms rise in funding of 4.2% for each of the next three years.
06 July 2006
UK interest rates remain on hold
UK interest rates have been kept on hold at 4.5% for the eleventh month in a row, the Bank of England has announced. The decision, by the Bank's Monetary Policy Committee, had been widely expected, however some analysts believe that rates could rise before the end of the year. In May, inflation rose to 2.
UK interest rates remain on hold
UK interest rates have been kept on hold at 4.5% for the eleventh month in a row, the Bank of England has announced. The decision, by the Bank's Monetary Policy Committee, had been widely expected, however some analysts believe that rates could rise before the end of the year. In May, inflation rose to 2.
30 November 2010
Corporation Tax Reform To Create 'Competition'
The Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.
Corporation Tax Reform To Create 'Competition'
The Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.
13 March 2006
CBI calls for business tax reduction
The rising burden of taxes is leading to UK businesses losing their competitive edge, the Confederation of British Industry has warned. The CBI launched an attack on 'stealth taxes', which it said where being introduced by the government under the guise of tax revenue protection or 'anti-avoidance' measures.
CBI calls for business tax reduction
The rising burden of taxes is leading to UK businesses losing their competitive edge, the Confederation of British Industry has warned. The CBI launched an attack on 'stealth taxes', which it said where being introduced by the government under the guise of tax revenue protection or 'anti-avoidance' measures.
21 May 2012
Report Calls For Extension of Austerity Measures Until 2020
A joint report published by the Taxpayers' Alliance and the Institute of Directors has said George Osborne should prolong the coalition's spending cuts by an extra five years to allow for dramatic tax reductions, with a single rate of income tax set at 30%.
Report Calls For Extension of Austerity Measures Until 2020
A joint report published by the Taxpayers' Alliance and the Institute of Directors has said George Osborne should prolong the coalition's spending cuts by an extra five years to allow for dramatic tax reductions, with a single rate of income tax set at 30%.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
