WA48

Business warns against raising tax

Business leaders have warned the Government against increasing the business tax burden.

Andrew Beales of the British Chambers of Commerce said, 'Business would not tolerate a further increase in National Insurance, nor any other move that would serve to increase their overall tax burden'.

The comments followed the release of two separate reports, which indicated that UK economic growth is likely to slow towards the end of 2004.

The Centre of Economics and Business Research (CEBR) has warned that growth in 2005 could fail to hit the levels forecast by Chancellor Gordon Brown.

Meanwhile, the NTC's Leading Indicator fell in July for the fifth month in a row, reaching the lowest level in three years.

The NTC said that the main factor was the recent increases in interest rates by the Bank of England.

The CEBR warned that if tax receipts do not keep pace with Mr Brown's expectations, the Chancellor could face a 'serious fiscal dilemma'.

Richard Greenwood of the CEBR said, 'If public finances do not improve sufficiently due to weaker than expected tax revenues, whomever is chancellor after the next general election will probably be faced with the prospect of pushing up taxes'.

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