IMMEDIATE CBI REACTION TO CHANCELLOR’S BUDGET SPEECH
Reacting to the Chancellor’s Budget speech, Richard Lambert, CBI Director-General, said:
“The key question for this Budget was whether it set out a credible and rigorous path for restoring the public finances to health. The CBI’s preliminary judgement must be that it does not.
“The Chancellor’s economic forecasts for next year and beyond look optimistic. By pushing out the horizon for balancing the books as far as 2018 the Government is running too much of a risk.
“On the fringes of this Budget, there are some worthwhile micro measures, including support for businesses struggling to access trade credit insurance, and for carmakers through a time-limited scrappage scheme. The changes on investment allowances and the ability for firms to carry forward losses are also welcome.
“Taking the Budget as a whole, a lot will depend on how far the Government can reduce public expenditure growth through public service reform and cultural change.”
A further detailed statement will follow.
22 April, 2009
Notes to Editors:The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as in Brussels, Washington and Beijing, the CBI coordinates British business representation around the world.
Media Contact:CBI Press Office on 020 7395 8086, out of hours pager 07623 977 854, or email press.office@cbi.org.uk