IoD calls for Brown 'rule' to reduce taxation
The Institute of Directors is calling on Gordon Brown to create another of his famous fiscal rules - this time to hold down taxation.
The chancellor is already committed to borrowing only for investment over the economic cycle and keeping national debt below 40% as a proportion of GDP.
In a submission to the chancellor ahead of next month’s pre-Budget report, Graeme Leach, chief economist at the IoD, is urging Brown to impose an additional commitment to push down taxation as a proportion of national output over the cycle.
He denied such a measure would call for ‘any wild or deep tax cuts or even any cut at all in some years’. But with the government deficit twice what it was last year some independent fiscal experts are predicting tax increases are a much more likely development.