A leading industry organization has issued a warning to the government about proposed business tax increases.

0

A leading industry organization has issued a warning to the government about proposed business tax increases.

A powerful corporate lobbying organization has warned the government against introducing fresh business tax increases in next week’s budget.

More taxes on firms, according to the CBI, might stifle the UK’s economic recovery.

Tony Danker, the director general of the IMF, warned ministers that the recovery was fragile and that they were “betting the shop” on private sector investment without doing everything possible to attract it.

“We cannot take the economic recovery for granted,” he added, adding that next week is a “defining moment” for the government.

“If the UK is to break out of a decade-plus cycle of anemic growth and low productivity, the Government must get serious about what it will take.

“There is a fundamental conflict between the government’s desire to encourage company investment and its tax policies. You can’t wish for the ends while ignoring the means to boost the economy. It’s something that every economist and business leader understands.

“This is the first expenditure review by the government since the epidemic hit and Brexit took effect. It must make a decision: do we want to grow or do we want to stay the same? “Should we go back to tax and spend?” Business and government are aligned in their goals for the country, but achieving them will require more collaboration.” Mr Danker stated that the government should not be complacent when it comes to economic growth.

“The Prime Minister advocates for a high-wage, high-skill, high-investment, high-productivity economy, and he is completely correct,” he said.

“However, pay growth without productivity growth leads to rising inflation, and tax increases stifle investment.”

Mr Danker stated that UK taxes was on track to hit its highest level in peacetime.

Share.

Comments are closed.