North needs stability and no tax hikes, Darling told

Mar 23 2010 by Peter McCusker, The Journal

NORTH East business leaders are urging the Chancellor to give clarity on the Government’s plan to reduce the UK’s national debt, while resisting the temptation to further tax entrepreneurs.

In what may well be the last of 14 Labour Party Budgets, speculation has surrounded the Government’s commitment to cutting public spending.

There have been some reports that Alistair Darling will announce which departments will be forced to make cuts although, with reports that the national debt will be £10bn less than originally estimated, some say there will be less temptation to wield the axe.

Mr Darling has promised a realistic Budget. He said: “There is no question of giveaways. The mood of people just now is that they want to see a sensible, workmanlike Budget, a Budget for the times in which we live.”

Manufacturers’ organisation EEF has urged the Chancellor to provide stability in the tax system and business environment, against the economic backdrop of a tentative recovery.

Alan Hall, EEF director in the North East, said: “Manufacturers will be looking for a credible plan on how the public finances will be repaired, rather than new spending that will have to be clawed back at a later date. That plan must be based on a full review of Government spending priorities and on the need to ensure the UK’s tax system is internationally competitive. Our North East manufacturers are likely to keep investment plans on hold if the Government fails to address these issues.”