Snacks accused of taxing UK economy with ‘chaos’ of legislation

Rishi Sunak was accused on Monday by senior business leaders of adding to the legislative “chaos” of a struggling UK economy amid growing signs that corporate Britain has become disillusioned with government policies. Ru.

Tony Dunker, CBI Employers’ groups argue in a scathing speech that the prime minister’s plans to repeal hundreds of EU-originating laws at the end of this year are creating “great uncertainty for British businesses”.

In an interview with the Financial Times, Dunker added his voice to the growing demand by businesses for effective government policies to support economic growth in the UK.

Dunker’s speech reflected the recession expected this year and growing fears among UK businesses about the damage caused by Brexit.

In a broad criticism of the government’s policies, Dunker said Sunak’s decision to repeal legislation enacted in the EU risks “throwing the industry into turmoil just as the economy is emerging from recession at the end of the year.” will warn you that there is

of the government Retained EU bill Up to 4,000 EU-originated laws covering areas such as consumer protection and workplace rights are set to expire on 31 December unless ministers explicitly decide to keep them.

CBI plans to reveal businesses won’t share Rishi Sunak’s bureaucratic bonfire aspirations. © Owen Humphreys/WPA Pool/Getty Images

Sunak argues this will create more agile rules for new industries, while Danker said in his speech:

Dunker makes clear that business, if it is to be done for its own sake, does not share Sunak’s aspirations for the bonfire of bureaucracy and divergence between UK and EU regulations.

“Divergence is a big political and economic issue,” he says. “We need to recognize that differences often make us shrink our market size or skip red tape.”

Last week in Davos, business secretary Grant Shaps Admitted While Brexit has created “significant challenges” for UK businesses, he outlined a growth plan he described as “Silicon Valley with a British edge”.

But some British businesspeople who attended the World Economic Forum in Switzerland returned home in a depressed mood, and the general reaction among the world’s elite to Britain was either indifference or sympathy. I reported that there is

“The economy is continental,” said one business leader. “It was the first real Davos since Brexit. There was a real sense of the dawn of a new reality. We are not invited to the top table.”

A leading investor added: Many of us have felt it. I went to dinner and we were all depressed and overdrinking. ”

Meanwhile, Jesper Brodin, CEO of Ikea’s main retailer Inca, told the Davos conference that Brexit had made cross-border business “much more chaotic”.

In his speech on Friday, Prime Minister Jeremy Hunt will outline areas he believes will boost growth in the UK economy and identify weaknesses he wants to address in the March budget.

Hunt has tasked the government’s chief scientific adviser, Sir Patrick Vallance, with making recommendations for growth in key areas. Mr. Dunker welcomes it.

Hunt also wants to tackle the issue of labor force sluggishness, but Dunker said the UK labor market is “failing” as multiple sectors grapple with worker shortages. It warns and adds: — something businesses disagree with — then their intervention in the labor market has to be the boldest in the world. ”

He also warns that the US, EU and Asian countries are planning to invest heavily in green technology.

He told British ministers, “International competitors in Europe, Asia and the United States are going to hell for green growth and leather to get corporate investment…we are now He seems to be behind them and hoping for the best.

Britain falls from fifth to 30th in OECD tax competitiveness rankings in April when existing incentives expire, according to CBI © Carlos Jasso/Bloomberg

Dunker confirmed to the FT that Snak has put an end to the political crisis surrounding the resignation of Boris Johnson and the short-lived Liz Truss as prime minister.

He suggested that the disruption paid a heavy price, stating: I believe it will change, but not overnight. ”

The UK will slip from fifth to 30th in the OECD tax competitiveness rankings in April when existing incentives expire, according to the CBI. British business investment now ranks alongside Turkey and Greece, he added.

Mr Dunker said in his speech:

Tesco Chairman John Allan said last week that the government needed a “seriously thought-out long-term growth plan.”

Sir James Dyson said in a Daily Telegraph article that growth had “become a dirty word” under Snak and called for a plan to “encourage private innovation and demonstrate ambition for growth”. He criticized the “ridiculous” and “short-sighted” approach to taxing businesses.

The CBI wants the government to replace the super-deductible tax credit, which was designed to encourage capital investment by businesses but expires in April, with new incentives for business investment.

UK corporate tax was raised from 19% to 25% in April, and Mr Danker said that by simply raising the business tax, Sunak was “pursuing an anti-growth policy, not a pro-growth one”. rice field. It is not a pro-investment policy, but an anti-investment policy. ”

A government spokesperson said:

https://www.ft.com/content/08512a03-3163-4c5b-bf86-395e05ddf133 Snacks accused of taxing UK economy with ‘chaos’ of legislation

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