LONDON (Reuters) – British employers told Prime Minister Boris Johnson’s government on Friday to “take action” by encouraging businesses to refrain from criticizing economic crises and beating them with high taxes.
The Confederation of Britain Industry has urged finance minister Rishi Sunak to refrain from raising taxes on companies when they introduce a budget and a three-year spending plan next week.
IWC chief executive Tony Danker said Sunak’s announcement Wednesday would be a “moment” for Johnson’s management as they seek to continue the coronavirus epidemic and build a Brexit economy.
“We can’t try to start an economy again,” Danker said. “If the UK needs to end its ten-year growth spurt and produce more harvests, then the government should be more concerned with what could lead to this.”
This month, Mr. Johnson vowed to abolish “the old type of low-wage, low-skilled, subsidized and unruly migrants,” comments that angered many business leaders who had already realized the corporate tax rate by 2023.
Relations between Johnson and business leaders have been strained since he led the campaign to leave the European Union in 2016 when he removed their economic concerns.
Danker said there had been rumors that Sunak could announce new business taxes more as they were pressured by other ministers to pay more money to their departments.
“There is a lot of disagreement that the government wants to open a business, but its tax laws do the opposite,” he said. “You can’t finish it and ignore the economic solutions.”
Danker reiterated Johnson’s promise to “fulfill” Britain’s impoverished territories which have so far not been provided with details.
“Instead of better planning to build more tennis courts, let’s have one that can re-create Britain’s main roads and factories,” said the CBI boss.
In addition to ordering new taxes, the IWC urged Sunak to increase its business incentives beyond 2023, to raise funds to pay for goods to encourage the use of electricity and to require regulators to prioritize spending.
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