'Damaging' tax increases may be needed in the next 2-3 years, says BCC

The British Chamber of Commerce said that unduly optimistic assumptions about tax revenues in the budget may require 'damaging' tax increases in the next 2-3 years, in order to meet the Chancellor's Golden rule.

The BCC estimates indicate that the moderation in consumer spending growth will be slower than the Budget envisages and forecasts for investment, and exports are too optimistic.

'Any tax rises would be harmful for the economy,' BCC Chancellor Isabella Moore said in a statement.

'If tax rises prove unavoidable it is critically important to avoid at all costs damaging tax increases on the business sector.'

The BCC also pointed out that the Budget has not addressed the serious concerns that public borrowing remains too high: 'this could cause serious problems for the economy in general, and the business sector in particular.'

What type of logic does the bcc use ?

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