The Confederation of British Industry (CBI) has urged Chancellor Gordon Brown to cut public spending, in order to address a £10bn 'black hole' in public finances.
In its Pre-Budget Report submission, the business group is warning that increasing business taxes during the current economic slowdown would be 'extremely damaging', and is calling on the Government to reduce public spending growth from 12% to 10% over the next two years.
John Cridland, CBI deputy Director-General, said, 'Whilst the Chancellor can shift the fiscal goalposts and delay the Comprehensive Spending Review, tackling the structural deficit can only be deferred, not ducked forever'.
The Treasury insists that its current public sector spending plans are fully affordable, although the Chancellor is expected to revise his economic growth forecast in the forthcoming Pre-Budget Report.
Coverage of the key Pre-Budget Report announcements that could affect you and your business will be available on this website – so remember to visit the site regularly.
Date:7 November 2005
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