Brown to outline economic plans

26-11-2007

Brown to outline economic plans
Prime minister Gordon Brown is expected to outline his long-term plans to boost Britain's economy, during a key speech today.

In an address to the Confederation of British Industry (CBI), Mr Brown is expected to indicate his support for a third runway at London's Heathrow airport and pledge additional spending on transport infrastructure and energy.

Reports claim the prime minister will also stress Britain must "leave behind the old policies of yesterday", with Mr Brown hoping to shrug-off a series of recent setbacks.

The government's handling of the recent Northern Rock crisis has again been called into question of late, while the loss of the personal details of 25 million people by HM Revenue and Customs (HMRC) has piled further pressure on the Treasury.

Opinion polls published at the weekend suggest public confidence in the government has been shaken in the wake of news that the sensitive child benefit data is missing.

Meanwhile business leaders are incensed at government plans to reform capital gains tax.

Last week, CBI director general Richard Lambert suggested the tax plans had damaged the government's relationship with industry and said the proposals had caused more controversy among the organisation's members than any other issue had done for several years.

Under proposals announced by chancellor Alistair Darling, in last month's pre-Budget report to parliament, different rates of relief for different kinds of investment would be replaced by a single flat-rate of capital gains tax of 18 per cent - with the change set to come into force from April next year.

But a joint letter subsequently sent to the chancellor by the CBI and three other leading business groups claimed plans to scrap taper relief for capital gains tax would discourage long-term investment and risk-taking and put the government's pro-enterprise agenda "into reverse gear".

Conservative leader David Cameron is also expected to criticise the tax plans when he makes his own speech to the CBI tomorrow, while a report today by parliament's Treasury select committee slams the government for failing to consult with business leaders over the capital gains tax reforms.

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