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<b>Business News:</b> Business groups demand tax burden reduction. By Dan Martin

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13th Mar 2006
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The UK's main business lobby organisations have released their budget submissions ahead of next week's budget and reducing the tax burden tops their lists of demands.

In separate submissions, the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC) and the Institute of Directors (IoD) all urged Gordon Brown to make slashing the burden of taxation his top priority next Wednesday.

The groups complained that high taxes are damaging the competitiveness of the UK companies compared to their international counterparts.

Leading the charge was the Confederation of British Industry (CBI) ' the UK's largest business lobby organisation ' which claimed that rather than reducing business costs, the government is actually increasing them.

CBI research showed the overall tax burden in the UK has risen from 34.7% in 1996, to 36.1% in 2004, and is expected to grow further to 38.5% by 2008.

As a result, the UK slipped from 12th out of 30 in the OECD's international tax comparison table in 1996 to 16th by 2004, with an anticipated slide to 19th by 2008.

CBI director-general John Gridland said: "We all want better public services, but the ever increasing proportion of national wealth being siphoned off by the government is no way being matched by an equivalent growth in public sector delivery.

"If UK firms are to compete globally, the government has to make efficiencies and restrain the growth of public spending, to create room to ease the tax burden on business."

In a similar attack, Bill Midgley, president of the BCC, called for reassurance that the tax burden on business will not be increased.

He urged Brown to announce targets and a corresponding timescale for reducing the administrative tax burden on business. National Insurance rules should also be aligned with those that govern pay-as-you-earn income tax, Midgley added.

Backing up the CBI and BCC submissions, the IoD called on the government to cut Corporation Tax by 2% to boost the competitiveness of the UK economy.

Miles Templeman, IoD director general, said: 'The corporate tax advantages once enjoyed in the UK have slipped over the last few years and major economies such as Germany, France and Italy have all reduced their rates whilst ours has remained the same.

"The UK corporate tax rate is now above the OECD average. If we are to remain competitive we must act now."

Gordon Brown will deliver his 2006 Budget in the House of Commons on March 22 at 12.30pm.

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By User deleted
15th Mar 2006 13:05

Probably a tired and Jaded one...
With its rapport and track record, it is unlikely that it will be a budget that will make UK great again as the economy has been hugely eroded and abused by the current Government from the U turns, red tapes, irregular legislations, skimming overseas by our leaders who approved their own schemes but not the others eg Inland Revenue properties sold to an tax haven country and release it back from them - what a scandle, liasions with money launders etc... and yet they got away with it. In return they screw us for misappropriations and genunine mistakes through fines, cameras, council taxes, land taxes, duty of care tax, penalties for dying, tax penalties for driving, tax penalties (NI) for working etc....... Too numerous to elaborate

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By AnonymousUser
17th Mar 2006 13:23

Another tired and jaded one
The Government (And the Chancellor of the Exchequer particularly) states that the economy should emulate that of the USA but Government policies are going towards the European model of high unemployment. Does that mean that the Govt. is lying or is it really rather stupid?
Businesses have more red tape than ever. We have the ideotic situation that the minimum wage is taxed; and child family tax credits go all the way up to a family that earns more than £60 k per year! This encourages people on low salaries NOT to do overtime as most of the extra pay goes to reduce the tax credit. Result: A 70% equivalent tax rate. Increases in tax and tax complexity increase burdens on business and increase the black economy AND the Govt has a black hole in it's finances as it has done exactly what it promised not to do - boom and bust! The NHS has run out of money, the Civil Service has ballooned; neither has increased productivity significantly as a result and they threaten to strike so as not to lose a retirement age of 60!

Does anyone actually disagree with my belief that things are NOT getting any better?


I'm sooo tired. I don't know sometimes if I can be bothered to run a business!

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