Rachel warned not to inflict ‘death by a thousand taxes’

The Chancellor has been warned by the head of the Confederation of British Industry (CBI) Rain Newton-Smith not to inflict “death by a thousand taxes,” and the government has to change course and stop placing more costs on businesses.

It is strongly suspected that Rachel Reeves will send taxes soaring to fill the black hole in the publics finances.

The Office for Budget Responsibility (OBR) has downgraded the government growth forecast for “every year” until the end of this Parliament in 2029.

Newton-Smith has told the Chancellor to stand up to Labour’s backbenchers and make tough decisions such as cutting the welfare budget.

The CBI chief said the Chancellor has to prove that she is committed to drive economic growth and she will have to make tough decisions to deliver this.

Newton-Smith told delegates at the CBI conference, “Prove it – against opposition, against short-term politics, be it on welfare, be it pension increases, show the markets you mean business.

“Short-term politics leads to a long-term decline, and this country cannot afford another decade of stagnation.

“That means making hard choices for growth now before they get harder, having the courage to take two tough decisions rather than 20 easier ones.

“Raising the headroom to make promises stick, it means one or two broad tax rises, rather than death by a thousand taxes.”