Outgoing CBI President Slams Blair For 'Stealthy Tax Hikes'

by Robert Lee, Tax-News.com, London

24 May 2002

Speaking on Tuesday at a select business dinner attended by the UK Prime Minister, departing Confederation of British Industry President Sir Iain Vallance criticised Tony Blair for implementing a 'string of stealthy tax hikes'.

Clearly intent on making his point before he stepped down as President of the independent employers' association, Sir Iain aimed several other scathing attacks at the special guest at the lobbying group's annual dinner, accusing Mr Blair of: 'squandering the UK's advantage as a country in which to do business.'

The former CBI President cited windfall taxes on utilities, reductions in dividend tax credits, the abolition of the advanced corporation tax, increases in road fuel duty and the climate change levy as the measures introduced under Labour which have impacted on the business community most severely.

He also told the Prime Minister that Chancellor Gordon Brown's April 17 budget had left 'a sour taste in the mouth of the business community,' not least because of the lack of communication between the government and the business sector.

However, Sir Iain did concede that the government had done a good job in maintaining macroeconomic stability:

'Business asks for two things in the economic management of the country: stability and consistency of policy. We find no fault in the management of economic stability,' he admitted.

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