The Confederation of British Industry (CBI) has hit out at the government over an estimated £4.21 billion tax increase faced by businesses over the next three years.
New fiscal measures planned by the Treasury will add millions onto the annual tax bills of British businesses, despite claims by ministers that they are boosting the nation’s international tax competitiveness, the CBI claims.
British businesses have welcomed a 2p reduction in headline corporation tax, but are urging the government to do more to reduce the tax burden on companies, particularly in light of the current economic slowdown and rising costs.
The employers’ group has analysed Treasury figures and suggests that more must be done to enhance economic growth, pointing to the decision to scrap plant and machinery investment allowances and the abolition of empty property relief as measures that will hit firms hard.
John Cridland, CBI deputy director general, said: "Despite enjoying a decade of strong growth and stable economic conditions, the government has little room to manoeuvre to give the economy a booster shot in the arm when most needed – instead it is leaning on the business community to shore up its finances."
Meanwhile, the CBI has also challenged the candidates standing for London Mayor this year to embrace its proposals for business and maintain London’s position in the face of increasing global competition.