CBI director-general Richard Lambert is pressing chancellor Alistair Darling to avoid ‘Budget theatricals’ and give a short, six-paragraph speech next week.
The chancellor should also propose to delay all the proposed business tax changes, it adds.
In the six-paragraph alternative speech Lambert suggests the chancellor say that pronounced economic uncertainty means it is impossible to make ‘credible judgements based on the near-term outlook’, and that there will anyway be a need to revisit the government's three-year spending plans next year, given the continued deterioration in the public finances.
‘The only worthwhile tax changes Mr Darling could make would be to postpone for a year ill-considered and rushed changes to capital gains and non-doms tax, to give the many affected individuals a decent period to plan,’ Lambert said.
He said the CBI forecasts that, contrary to the Treasury's optimistic projections, and on current spending plans, government borrowing would total a high £45bn in 2009-10, and the current account would not move out of deficit until 2011-12 as opposed to the forecast 2009-10.
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