CBI calls for end to budget theatricals

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.

Further reading:

Final CGT rules hammer entrepreneurs

CBI hits out at ‘rushed’ non-dom plans

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