Britain’s bosses have warned George Osborne against any new tax rises in his first all-Conservative budget this summer, urging the Chancellor to focus on cutting spending, reports The Telegraph.
The Institute of Directors will on Monday call on the new Government to prioritise plugging the UK’s deficit over the course of the parliament, warning that borrowing costs will not stay at current lows forever and that the country cannot risk another fiscal crisis.
The group, which represents 35,000 company directors, also calls for bold action on infrastructure, saying the Government must improve Britain’s broadband and energy networks.
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It comes as the latest survey shows a boom in exports, with the British Chambers of Commerce saying half of manufacturers have shrugged off a strong pound to report increases in orders.
Mr Osborne announced last week that he will hold an emergency Budget on July 8 for “working people”, which is expected to include further spending cuts and updated economic forecasts. The Chancellor has pledged to run a surplus by the end of the parliament, and has promised to legislate against any rises in VAT, income tax or national insurance.
Britain ran a deficit of £87.3bn in 2014-15, which is due to fall to £75.3bn this year, reaching a surplus of £5.2bn in 2018-19. Public borrowing figures for April, due to be released on Friday will give the first indication of whether Mr Osborne is on track.
In a survey of 1,211 IoD members, the vast majority said the bulk of deficit reduction should come from spending cuts, although only 12pc believe that a surplus could come entirely from cuts.
There is widespread support for a crackdown on tax avoidance, while improving broadband infrastructure is a major priority.