Brown's Early Business Tax Announcement Angers Opposition

by Jason Gorringe, Tax-News.com, London

28 March 2002

Although the early announcement of three tax breaks intended to benefit UK businesses has delighted industry groups and economists, the method used to announce the measures has dismayed Opposition politicians.

Speaking on Tuesday, Deputy Director of the Confederation of British Industry (CBI), John Cridland, commented: 'Firms will be delighted with this signal that Gordon Brown is pursuing his pro-enterprise course.'

The Treasury has stressed that the three measures - which will provide tax relief on the sale of substantial shareholdings, on the acquisition of intangible assets, and on research and development investment - were announced in response to a parliamentary question on Monday in order to ensure that, given this year's late budget, UK businesses will have as much certainty as possible at the start of the new tax year.

However, Opposition politicians have slammed the move, claiming that the government is trying to seize back the news agenda in a week overshadowed by predominantly anti-Labour media attention.

'It is outrageous that the government has slipped out major tax announcements in written answers rather than a statement from the Chancellor in the Commons, let alone in the budget,' raged Liberal Democrat Treasury Spokesman, Matthew Taylor. 'Once again Labour care more for spin than accountability,' he added.

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