Treasury Minister Philip Ozouf

BUSINESS leaders have warned that they will not support any tax rises unless the Treasury shows it is exploring every opportunity to reduce the budget deficit.

Earlier this year Treasury Minister Philip Ozouf refused to rule out tax increases as he outlined plans for the comprehensive spending review – a scheme designed to reduce expenditure and improve efficiency to plug a £50 million deficit caused by the recession.

The Senator is due to release more detail about how the savings will be made during a speech to members of the Institute of Directors at the Grand Hotel next week.

Gary Drinkwater, chairman of the IoD, said that tax rises could be met with opposition.
He said: ‘The IoD supports the Treasury’s need to address the £50 million budget deficit and recognises the challenges it will bring to the minister.

‘As a representative of local business leaders, the IoD will not support any attempt to raise more tax until the government shows that it is genuinely committed to exploring every opportunity to reduce the deficit.’