CBI urges Darling to “call off usual budget theatricals”

Source: Exec Digital UK

Date :03/03/2008 09:11:19

Ahead of his first Budget speech next week, the CBI is urging the Chancellor to deliver an abrupt, six-paragraph speech with no new initiatives and a delay in all the proposed tax changes affecting business.

In its six-paragraph alternate budget, published today, the employers’ organisation says the turmoil in the global credit markets makes it impossible for the chancellor to make any "credible judgments" on the near-term outlook for the economy.

“This problem is compounded by the fact that the capacity of HM Treasury has been stretched in recent months by the problems at Northern Rock, and by work on necessary reforms to the banking system,” the speech adds.

Turbulent times

Calling on the Chancellor to set aside the normal Budget theatricals in favour of a slimmed down, practical statement may seem fanciful,” said Richard Lambert (pictured), CBI director general.

"Our suggestion, made more in hope than expectation, reflects turbulent times both at the Treasury and in the UK and wider world economy."

Tax changes

Mr. Lambert wants to see the “ill-considered and rushed” changes to Capital Gains and non-doms tax postponed for a year, insisting that an uncertain economic environment was no time to bring in additional changes to so much of the tax system.

"Firms have had enough unexpected change to the corporation tax system," he says.

"Consumers, meanwhile, are already struggling with significant reductions in their disposable incomes, so further constraints would only make matters worse.

“Faced with these realities and with the Treasury seemingly creaking at the seams as it grapples with nationalising Northern Rock and reforming bank supervision, the sensible decision would be to slim down this year’s Budget to the bare necessities,” he says.

March 03, 2008