The last Budget of this Parliament must concentrate on public spending cuts, rather than tax increases, according to the British Retail Consortium (BRC).
Ahead of next month’s expected Budget, the BRC’s submission to the Chancellor Alistair Darling 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.
Stephen Robertson, BRC 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.”
