Treasury squares up to CBI attack

Manufacturing News, Source : TheManufacturer.com
Published : 12 Nov 2002 10:38

Paul Boateng, chief secretary to the Treasury, has reacted angrily to the CBI’s accusation that business is too heavily taxed to be competitive.

In his pre-budget report to the Treasury yesterday, CBI director general Digby Jones had complained that the chancellor had been “siphoning off company funds” to pay for improvements in public services.

Boateng insisted, however, that the Treasury would make no apology for putting money into hospitals and schools. The Treasury also sought to undermine the CBI’s calculation of £47 billion extra tax by calling the figure ‘meaningless’. The CBI insists that its calculations are based on Treasury figures.

However you work it out, though, the increase in National Insurance contributions which comes into force next April does tend to add weight to the CBI side of the argument.

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