CBI warns govt 'convincing plan for public finances' needed
CBI warns govt 'convincing plan for public finances' needed
Monday 8th March 2010
Business leaders have today warned the government that it must deliver a "convincing plan for public finances" by 2016.The Confederation of British Industry (CBI) said this morning in letter to the chancellor Alistair Darling that the government should set out a "clear and timely plan for restoring fiscal credibility and nurturing growth".
In the letter Richard Lambert, the CBI's director general, set out two critical objectives for the pre-general election Budget - boosting the UK's fiscal credibility and fostering economic growth. He said the government must take steps to balance the books by 2015-16 - two years earlier than planned – and said the government must do more to support businesses, including reversing the planned rise in employers' National Insurance Contributions, which the CBI says "amounts to a tax on jobs".
Mr Lambert said: "This Budget comes at a pivotal moment for the UK economy. Investors are clearly jittery about sovereign debt, but are prepared to give the UK the benefit of the doubt until after the election.
"The UK's deficit, though worryingly large, is still manageable, but the government must act now to set out a convincing, credible pathway for balancing the books. It is critical that this Budget provides credibility and direction on the public finances, and creates the right conditions for businesses to drive economic growth."
The business group said the Budget should concentrate on reducing obstacles to growth, investment and employment, and instead nurture entrepreneurship and competiveness.
Responding to the CBI's submission to the chancellor, Liberal Democrat treasury spokesman Vince Cable said: "This submission highlights how dangerous the government's position is.
"The country can't afford to have political parties playing politics with the public finances.
"The British people and the markets have the right to know how and when each political party will tackle the deficit."
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