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Business Budget for a 'balanced economy'

Published On 16 March 2007 at 15:23:15

The upcoming Budget will be a 'Budget for business', according to chancellor Gordon Brown.

In an interview with the Financial Times ahead of his 11th budget next Wednesday, Mr Brown insisted that UK businesses would benefit from measures intended to boost competitiveness.

"We have already cut corporation tax from 33 pence to 30 pence. We have cut capital gains tax for business assets from 40 pence to ten pence for long-term investments … We want Britain to remain one of the most competitive countries in the world."

No doubt reassuring words for the nation's small businesses, although the chancellor declined to elaborate further as to what exactly the Budget contains to this end, saying "business will have to wait with some patience until next Wednesday".

"I don't think people will be in any doubt when they see the figures that Britain has come through the challenges it has faced and that the economy is growing in a balanced way," he said.

The Confederation of British Industry recently increased its forecast for growth in the UK economy by 0.2 per cent from its December estimate to 2.9 per cent.

Deputy director-general of the organisation John Cridland welcomed Mr Brown's words, but stressed that he must address the "tax burden" faced by UK businesses at present.

"If the chancellor's hint today turns into a pledge on Wednesday, he will gain companies' praise," Mr Cridland concluded.

 

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