Needed Here – A Genuine Budget for Business: Cable

2.29.52pm BST (GMT +0100) Tue 8th Apr 2003

Ahead of tomorrow's Budget statement, Vince Cable MP - Liberal Democrat Shadow DTI spokesman – called on Gordon Brown to deliver a genuinely business-friendly Budget.

Dr Cable said: "British business is currently facing unparalleled uncertainty. Figures released last week by the Office of National Statistics show corporate profits are at their lowest level for a decade, and investment has collapsed. "

"Gordon Brown must act to create an environment in which British business can compete and grow. We have identified a shortlist of actions that would provide a kick-start to such growth.

These include:

• Simplifying the tax system: the complexities of the tax system impose unnecessary burdens on business. We propose to reduce this, for example aligning the base for National Insurance and Income Tax.

• Insurance Premium Tax: hikes in Employers Liability Compulsory Insurance are crippling, and the ELCI review must reassess coverage and lead to reforms such as a 'no-claims' bonus system rewarding employers for good performance. In the near term the Treasury should rebate its windfall from IPT to provide relief.

• Removal of administrative burdens: we support the objective of measures like the Working Families Tax Credit, but it should be operated by the Department of Work and Pensions, not by businesses.

• Small enterprises: We will cut business rates on small enterprises by introducing a Business Rates Allowance, similar to a personal tax allowance.

• Energy taxation regime: we propose a review of the taxation regime to encourage both appropriate additional exploration and the re-use of existing infrastructure.

• Sustainable energy: we propose reduced VAT on energy conservation materials. Together with mandatory standards for new buildings, this will help to encourage business and domestic energy conservation.

• Fair energy taxation: we propose to replace the climate change levy with a carbon tax (graduated according to the carbon content of the energy source) and an emissions trading scheme to allow businesses to cut greenhouse gasses in the most cost effective way."