UK employers tell Johnson to 'get serious' about tax and investment




  • In Business
  • 2021-10-21 23:11:35Z
  • By Reuters
 

LONDON (Reuters) - British employers told Prime Minister Boris Johnson's government on Friday to "get serious" about encouraging business investment and stop blaming them for the economy's problems and hitting them with higher taxes.

The Confederation of British Industry urged finance minister Rishi Sunak not to increase the tax burden for companies again when he delivers a budget statement and a three-year public spending plan next week.

CBI Director-General Tony Danker said Sunak's announcement on Wednesday would be a "defining moment" for Johnson's administration as it tries to move beyond the coronavirus pandemic and build a post-Brexit economy.

"We cannot take the economic recovery for granted," Danker said. "If the UK is to break out of a decade-plus cycle of anaemic growth and zero productivity, then the government has to get serious about what it will actually take to deliver that."

This month, Johnson vowed to end "the old failed model of low wages, low skills, supported by uncontrolled immigration," comments which angered many business leaders who were already smarting from a planned increase in corporation tax in 2023.

Relations between Johnson and business leaders have been tense since he led the campaign in favour of leaving the European Union in 2016 when he dismissed their concerns about the impact on the economy.

Danker said there were rumours that Sunak might announce more new taxes for business as he comes under pressure from other ministers to provide more cash for their departments.

"There is a fundamental inconsistency where the government wants to unlock business investment, but its tax policies do the opposite," he said. "You cannot will the ends and ignore the means to turbocharge the economy."

Danker also took a swipe at Johnson's promise to "level up" Britain's poorer regions which has so far been short on detail.

"Rather than a levelling up plan that builds more tennis courts, let's have one that regenerates Britain's high streets and industrial heartlands," the CBI boss said.

As well as ruling out new taxes, the CBI urged Sunak to extend his incentive for business investment beyond 2023, overhaul a property levy to encourage investment in energy efficiency and require regulators to prioritise investment.

(Writing by William Schomberg, editing by Andy Bruce)

COMMENTS

More Related News

UK services industry sees record cost inflation - CBI
UK services industry sees record cost inflation - CBI

Costs are rising at the fastest rate in over 20 years for firms in Britain's services sector, according to a business survey released on Tuesday which shows ...

France calls for EU deal with Britain on illegal immigration
France calls for EU deal with Britain on illegal immigration
  • World
  • 2021-11-29 16:41:59Z

France wants a new post-Brexit accord between Britain and the European Union on handling illegal immigration, in the wake of the disaster in the Channel last...

Politics latest news: Keir Starmer overshadows Angela Rayner speech as Labour reshuffle underway
Politics latest news: Keir Starmer overshadows Angela Rayner speech as Labour reshuffle underway
  • World
  • 2021-11-28 23:49:40Z

Britain too attractive to migrants, say French Blue Wallers could give Tories bloody nose in Bexley £200 fine for mask non-compliance from tomorrow Action on...

See What a $100K Salary Looks Like After Taxes in Your State
See What a $100K Salary Looks Like After Taxes in Your State

America is still in the midst of a health crisis triggered by the global coronavirus pandemic. Unfortunately, this has brought financial hardship to many...

France says it will not be held hostage by British politics on migration
France says it will not be held hostage by British politics on migration

CALAIS, France (Reuters) -France is ready for a serious discussion with Britain on issues relating to illegal migration, but will not be held hostage to...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business