CBI warns against Budget tax rises

The government should think twice before imposing any excessive tax rises that may create a burden for UK firms, the CBI has warned.

In a letter to the chancellor of the exchequer, the group emphasised that changes should be made that do not hinder the growth of the economy.

As a result, spending needs to be controlled as opposed to increasing taxes, with the CBI suggesting for every £1 of tax rises, there should be £4 of expenditure cuts.

John Cridland, CBI Deputy Director-General, commented: "This needs to be a bold and ambitious Budget, with a credible pathway for restoring sound public finances and a convincing narrative for growth."

He added that the government's resource planning should enable future growth to be safeguarded alongside the "radical re-engineering of public services".

David Cameron recently invited the public to put forward ideas for which areas of public services should be cut to reduce the deficit.

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