CBI warns of budget giveaway
The CBI has today stepped in to warn the UK government that the economy cannot afford a giveaway budget. While in reality the UK authorities have very little leeway with regards to taxes and other charges, there are concerns that Alistair Darling may well target the rich to facilitate tax cuts and increase tax allowances for low-income families across the UK.
However, the CBI believes very strongly that the Chancellor cannot afford to give anything away at the forthcoming budget as all areas of UK society are struggling. As national debt continues to mount, speculation increases regarding a potential £100 billion plus budget deficit next year and the economy continues its slide towards a depression there would appear to be very little left in the UK government's pot. We may well see some tinkering with the outside edges of the tax regime in UK and potentially some green taxes introduced but ultimately there is very little the UK government can give back to the UK taxpayer at this point in time. Indeed, it is 100% certain that the next two or three years will see substantial tax increases across the UK to bring down national debt and balance the UK budget again.
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