the CBI has called on Chancellor George Osborne to use next week’s autumn statement to stick to cutting the deficit in the public finances, but to do more to drive growth.
It also wants the proposed business bank up and running as soon as possible, and warned against a reduction in pension tax relief.
Responding to suggestions that the government may reduce the latter, CBI Director-General, John Cridland, said: “Lowering the threshold below £50,000 is not a wealth tax - it’s an income tax which would hit swathes of middle-income earners. This would hit small business owners who invested heavily in their companies in the early years.”
As for the business bank, he said: “There is a consensus emerging that a government business bank can help ease the transition to a new normal of business lending.”
The CBI would judge it on whether it improves the take up of existing initiatives and if it fills the finance gap for growing firms. He said that cutting the deficit was critical for the UK to retain overseas confidence.