The Institute of Directors (IoD) is urging the government to use the upcoming Budget to reduce the planned level of business tax rises.
The IoD believes that the Office for Budget Responsibility (OBR) will revise its GDP growth forecasts up for 2021, potentially resulting in stronger tax receipts. It stated that as such, the need for government borrowing has lessened, giving the government ‘more room for manoeuvre than previously expected’.
The business group is calling on the government to conduct and publish an assessment of the rise in employers’ national insurance and to commit to taking account of the results of this assessment before the end of the 2022-23 transition period to the new Health and Social Care Levy system.
‘When the national insurance increases were announced, we were surprised about the lack of analysis as to the effects of these decisions,’ said Kitty Ussher, Chief Economist at the IoD.
‘Parliament is being asked to agree legislation with significantly negative economic and business impacts, without having the evidence before them of the extent of that impact.’