CBI continues to fight against Darling's capital gains tax changes

26 November 2007
The Confederation of British Industry (CBI) aims to change Chancellor Alistair Darling's mind over his proposal to introduce a single 18 per cent rate as of April 6, spelling the end of taper relief at its annual conference, which takes place today and tomorrow.

Speaking last week, director general of the CBI, Richard Lambert, said the group will campaign "as hard as it knows how" against the new tax reform. He said that although the Government has set aside some time to hear business organisations voice concerns, it had not really listened to what they were saying and described its response as "entirely inadequate". He added that a number of companies would be "seriously affected" by the alterations.

Mr Lambert said businesses were becoming increasingly angry about the Government's attitude toward UK firms, and that the tax changes put forward in the pre-budget report were among the most contentious in recent memory. "A lot of businesses have built their plans on an assumption that the regime Gordon Brown introduced when he was Chancellor was something that could be relied on," he said.

According to the CBI, the decisions were damaging relationships between the Government and UK companies. "The problem the Government has is that they need money to plug a funding gap. What we are saying is they won't do it this way," he added.

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