CBI calls for ‘business-friendly’ budget
The Government is being urged to produce a genuinely “business-friendly” Budget on March 16.
The Confederation of British Industry (CBI) says there is growing concern about weak corporate profitability.
It claimed that despite significant increases in the profits of some well-known companies, research shows that profits as a share of gross domestic product (GDP) have declined.
The business lobby group said corporate profits had been put under pressure by increased global competition, the continued strength of sterling, higher taxes, greater regulation, and rising raw material prices.
It also blames pension fund top-ups, retrospective taxation and government sector expansion for placing pressure on British commerce.
CBI director Digby Jones, said: “As corporate profitability is constrained so are Treasury tax receipts but, no matter how tempting, there should be no hikes in business taxation,”
“The economic outlook is already uncertain and any increase in bottom line costs will have a serious and lasting effect on investment and the UK’s long-term ability to compete.”
“Our stable, successful economy is the result of many hard-won battles, the government should do nothing to jeopardise it,” Mr Jones insisted.
The Chancellor Gordon Brown will unveil the Government’s annual Budget on March 16.
