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PBR: CBI criticises headline grabbing speech

Richard Lambert, CBI Director-General, says: “The Chancellor has made a serious mistake imposing an extra jobs tax at a time when the economic recovery will still be fragile. Increasing the National Insurance contribution will hold back job creation and growth.”

The CBI also says that Darling’s speech did not spell out how the Government intends to reduce public sector spending.

“He has also missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier. We are no clearer today as to how the Government plans to reduce public expenditure.

“A headline-grabbing tax on bankers’ bonuses may have populist appeal, but the government needs to take care not to put the UK’s financial services sector at a comparative disadvantage internationally. The threat of an exodus of talent is real.”

But the CBI says Government eforts to tackle public sector pay and pensions should be welcomed.

Lambert says: “We applaud the Government’s courage in beginning to tackle the thorny issues of public sector pay and pensions. There is also an encouraging package to support companies as they seek to exploit new low-carbon opportunities.”

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