Chancellor Gordon Brown looks set to announce business tax cuts in the Budget later this year, but w...
Chancellor Gordon Brown looks set to announce business tax cuts in the Budget later this year, but will raise taxes in other areas, including possibly scrapping VAT exemption on food.
The news comes through today's The Times, which points out that the chancellor is keen to educate young people about entrepreneurship, to the extent that it could become a compulsory subject in schools across the country.
The paper admits that unions are unlikely to be impressed with the new sop to the business community, but with the City drawing a line in the sand over public-private partnerships because of the Railtrack fiasco, the treasury is under pressure to show a kinder side to employers.
VAT is seen as unlikely to rise due to election committments made before the last election, The Times says.
That view is also held by the influential Institute of Fiscal Studies, which said ealier this year that most evidence pointed to movement on National Insurance contributions as a way to raise the funds the government has pledged to public services during the next few years.
Just how the government will fully balance its spending pledges against its tax pledges remains unknown, but the lean towards lower business taxes indicates personal direct and indirect taxes may have to rise.
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