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CBI chief warns Burnham against tax speculation and uncertainty
Rain Newton-Smith urged the next UK chancellor to set out a credible fiscal plan with fiscal rules early, and cautioned against expensive renationalisation of utilities.
Guardian Business reports that Rain Newton-Smith, chief executive of the CBI, warned Labour leader Andy Burnham to avoid creating uncertainty for British businesses as he prepares to take up the party leadership on Friday.
In an interview, Newton-Smith said Burnham should not allow a new “summer of speculation” on taxes or spending, arguing that unclear signals about whether taxes might rise or spending might change are difficult for companies to plan around.
She also pointed to businesses’ high energy bills as a key cost the new leadership should not neglect, and said the chancellor should not be rushed into decisions in the first couple of weeks, instead prioritizing time to listen to business.
Newton-Smith praised Burnham’s business-friendly approach as mayor of Greater Manchester, while warning that proposals from allies to renationalise key utilities could be “incredibly expensive.”