Budget must focus on spending cuts not tax hikes
Ahead of next month's expected Budget, the BRC's submission to the Chancellor makes clear retailers believe Government moves to deal with the budget deficit should prioritise cutting non-essential public spending over tax rises – or risk a return to recession.
The BRC's Budget submission, published today (Monday), says: "The key challenge for the Government in the Budget is to outline a credible plan for addressing the fiscal deficit without precipitating a ‘double dip' recession…A significant focus must be on driving efficiency and productivity in the public sector…there is a need to review all options, including ceasing areas of activity …and de-commissioning services that Government can ill afford to continue."
Stephen Robertson, British Retail Consortium Director General, said: "The size of the country's deficit means action must be taken. To nurture our fledgling recovery, the main tool for dealing with the deficit has to be cutting non-vital public sector spending.
"Some tax rises maybe inevitable, but no Government should rely on tax hikes to reduce borrowing. The increases would have to be so large that customers' ability to spend would be wrecked – risking a double dip recession."
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