The government risks pushing Britain into a “low-growth, high-tax” trap that will lead to a lost decade, CBI boss Tony Danker has warned.
In a highly critical assessment of government policy, the director-general of the Confederation of Business Industry will say today that ministers appear to be content to settle for a “miserable projected growth rate” over the next four years.
He will warn in a speech that unless the chancellor introduces policies to encourage firms to invest in the UK, ministers will have no choice but to keep taxes at historically high levels or cut public spending.
He will remind the chancellor: “Growth is the only way that you can offset the risk of high taxes or austerity.”
And add: “The trap is already kicking in. And that trap is only going to get worse.”
