15 November 2002
The chief secretary to the Treasury accused the business lobbying organisation of making 'wrong and misleading' claims about the tax regime that Chancellor Gordon Brown has put in place since 1997.
CBI director-general Digby Jones had earlier criticised the government for 'siphoning off' funds from companies, and warned that they were running the risk of damaging the economy.
Boateng flatly rejected the accusation and said Jones had not given a 'fair and accurate' picture of the tax changes introduced by the government since winning power. '[Jones] himself admits that there is a case for public service investment and we make no apologies for investing in public services,' Boateng added.
The CBI's submission to the Treasury in advance of Brown's pre-Budget report, expected later this month, argued that the tax burden generated by increased public investment was falling disproportionately on businesses.
It said that between 1997 and 2005 business would have to pay an extra £47bn to the Exchequer. That figure is cumulative rather than annual.
The document also expressed fears that Brown could put taxes up further if, as widely expected, he has to revise downward his GDP growth forecasts for this year and next.
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