CBI director-general Richard Lambert has said today’s budget contains “no nasty surprises”.
Focus points of chancellor Alistair Darling’s first budget include a postpostment of a planned 2p fuel duty rise until October and a target for all new non-domestic buildings to be zero carbon by 2019. Capital gains tax is also being kept at 10% for small firms.
“On the surface there are no nasty surprises, but his growth assumptions are optimistic and leave him with no room for manoeuvre should things take a turn for the worse,” said Mr Lambert.
“Borrowing also looks set to rise by a further £20bn over the next four years, which is a cause for concern. And by 2010/11, the impact of this budget will be to raise total tax take by nearly £1.9bn.”
He said the measures announced were a credible first step towards the government winning back its enterprise credentials, though he said anger over capital gains tax was “still simmering”.
The government has cut its economic growth forecast for 2008 by 0.25% to 1.75-2.25%.
