The Confederation of British Industry (CBI) recommends targeted and modest tax cuts to boost the UK economy.
The Confederation of British Industry (CBI) has suggested that UK businesses could be boosted by as much as half a billion pounds through “targeted and modest” tax cuts.
Ahead of the March 21st Budget, the CBI has called for George Osbourne to implement a “Plan A Plus” in order to further stimulate growth and investment.
John Cridland, Director General of the CBI, stated “we’re calling on the government to make some targeted changes to the UK tax system, which could make an impact on business decisions and create new opportunities for growth.”
The CBI believes that many firms, especially those that invest in infrastructure, would benefit from specifically directed tax cuts, allowing them to fulfil their potential to grow – creating new jobs in the process. This could also increase confidence in the private sector, encouraging further investment and expansion.
While the CBI wants to ensure that the policies outlined are fully implemented, Cridland does not agree with Ed Balls, who has suggested stronger, broader tax reductions, including lowering VAT and decreasing income tax by 3p for the next 12 months. He believes Mr. Balls’ cuts were too severe and not affordable, as is an outlined £12bn increase in borrowing.
Mr Cridland believes these changes must happen soon, adding “with our economy firmly under the international spotlight, there is no time to lose: Plan A Plus must become a reality”.