Budget 2002

Manufacturing News, Source : TheManufacturer.com
Published : 17 Apr 2002 11:04

The CBI calls for tax cuts as Gordon Brown is set to make one of the biggest political gambles of his career when he unveils his Budget today.

Gordon Brown in expected to make make the biggest political gamble of his career when he unveils his Budget today. It is widely expected that he will increase taxes to pay for improved public services.

The Confederation of British Industry, however, has said that Brown must avoid increasing the growth rate on public services and cut taxes on business by £2 billion. It called for “absolutely no further ratcheting up of total spending” to avoid the need for further tax increases.

The CBI’s director-general Digby Jones linked recent falls in corporate profitability to past tax increases on business income and predicted that these have cost companies £29 billion sice 1997.

Mr Brown has confirmed that he would introduce a research and development tax credit. And the CBI has already welcomed the early announcement of tax exemptions for the disposal of substantial shareholdings, and tax relief for the costs of tangible assets. Together these are worth £500 million a year for big business.

In a ‘Budget wishlist’ in the Guardian newspaper, the Liberal Democrats cited the need for a more competitive pound to help Britain’s beleaguered manufacturing sector. This would be achieved, the party said, with the announcement that the Government was beginning negotiation for euro entry.

They also called for the simplification of taxation, claiming that business success should not be dependent on ‘chasing tax breaks.’

Useful links:

For live coverage of the chancellor’s speech, BBC Online is webcasting the event: BBC Online Budget 2002

PricewaterhouseCoopers will be webcasting their UK Budget Breakfast event from the Banqueting House, Whitehall. At 8.30am prompt on Thursday 18 April, you can watch the keynote speakers live: " target="_blank">PwC UK Budget Breakfast

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