BRC urges government not to increase taxes

Date: 2nd March 2010

The British Retail Consortium (BRC) has called on the government to not increase taxes as a way of reducing the country's deficit.

According to the organisation, the final Budget of this Parliament should concentrate on cuts to public spending rather than increasing the tax burden on UK businesses.

Stephen Robertson, BRC director general, said: "The size of the country's deficit means action must be taken. To nurture our fledgling recovery, the main tool for dealing with the deficit has to be cutting non-vital public sector spending.

"Some tax rises may be inevitable, but no government should rely on tax hikes to reduce borrowing. The increases would have to be so large that customers' ability to spend would be wrecked - risking a double dip recession."

The BRC's Budget submission, which was published yesterday (March 1st), said the "key challenge" for the government will be creating a "credible plan" for economic recovery without risking a return to recession.