Calls for Strategic Tax Reforms Over Pre-Election Promises
The CBI urges UK finance minister Rachel Reeves to abandon pre-election tax promises targeting the public, focusing on strategic reforms instead of burdening businesses. This comes amidst increased employer taxes, economic challenges, and calls for restructuring the tax system to stimulate growth and investment.
The finance minister of the UK, Rachel Reeves, faces scrutiny as the head of the Confederation of British Industry (CBI) warns against targeting businesses with new tax hikes in the upcoming budget. Writing in The Guardian, CBI's CEO Rain Newton-Smith called for strategic tax reforms over election-centric promises.
Newton-Smith emphasized that imposing new tax burdens on businesses would contradict the government's economic growth objectives and commitments made after last year's significant tax increases. Instead, Reeves should explore long-term reforms, moving away from her manifesto's rigid pledges.
Businesses have already been affected by Reeves' earlier tax hikes, implemented in October. With the November budget looming, economists predict a need for more revenue amidst rising borrowing costs and a tepid growth outlook. Newton-Smith points towards various reform avenues, including property taxes and VAT thresholds, urging adaptation to shifting global dynamics.
(With inputs from agencies.)
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