CBI seeks budgets boost for business

By Mark Fordham

The Confederation of British Industry (CBI) has called on the government to give a £500 million boost to business in the Budget by implementing a series of "targeted and modest" tax cuts.

In its submission ahead of the March 21st Budget, the business lobby group has urged the chancellor to help promote growth and investment.

It suggested that a new tax cut for firms that invest in infrastructure projects could be a way to save money.

Director general of the CBI John Cridland said the chancellor must use this Budget to score the growth and investment policy goals that were set in his Autumn Statement. He added that with the economy in a potentially perilous position there is "no time to lose".

"We're calling on the government to make some targeted changes to the UK tax system, which could make an impact on business decisions and create new opportunities for growth," he continued.

The shadow chancellor Ed Balls has recently called for tax cuts in the Budget, suggesting that a cut to VAT and a three pence income tax cut for a year would help stimulate growth but Mr Cridland doesn't believe this is viable.