No need for tax rises, E&Y warns Brown
Ernst & Young's ITEM Club has warned the chancellor there is no need for tax increases in the next Budget, saying such a move would be damaging to the UK economy.
According to the economic forecaster, Gordon Brown’s revenue and spending problems are only short term making tax increases in a slowing economy ‘inappropriate’.
But ITEM also warned the uncertain economic outlook meant the chancellor would be unlikely to announce any significant increases in public spending in his pre-budget report, expected later this month.
At the same time, E&Y launched a plea for tax simplification, calling on the chancellor to deliver the commitments he had already made.
Douglas Fairbairn, E&Y’s head of tax said: ‘If he has any more complicated tax reliefs or credit ideas up his sleeve he should keep them there.’