ClickAJob News

Chancellor Alistair Darling could come under fresh fire over his plans to reform capital gains tax when he addresses business leaders today.

Mr Darling's speech to the Confederation of British Industry's (CBI) annual conference follows a difficult period for the Treasury chief.

In addition to criticism of his tax plans, the chancellor has also faced questions in recent weeks over his handling of the Northern Rock crisis – which saw the first run on a British bank in almost 150 years after the lender sought emergency funding from the Bank of England in the wake of the ongoing global credit crunch.

Mr Darling was also forced to tell MPs last week that a security breach at HM Revenue and Customs (HMRC) had led to the loss of two computer discs containing the personal details of 25 million people.

After a rocky initial period as chancellor, Mr Darling is expected to reassure CBI delegates the government has the ability to ensure financial stability ahead of next year's expected economic slowdown.

Reports suggest the chancellor will also defend his handling of the Northern Rock debacle and suggest a failure to act could have led to the bank going under – something he is likely to argue would have been disastrous for the UK's economy.

It has also been claimed Mr Darling may signal the possibility of some concessions to business over his capital gains tax reforms, with the prospect of such measures being unveiled before Christmas.

Proposals reportedly being considered by the Treasury include the possibility of granting tax relief to small business owners who sell their business and retire.

Yesterday a report by MPs warned the department's plans to withdraw taper relief for capital gains tax could have a "detrimental" effect on small firms.

Parliament's Treasury select committee also accused ministers of failing to consult with businesses over the planned change, announced in last month's pre-Budget report.

Under proposals confirmed by chancellor 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 the plans to reform capital gains tax have been met with concern within the business community, with industry leaders claiming the proposals will discourage long-term investment and risk-taking.

Conservative leader David Cameron is expected to criticise the tax plans when he makes his own speech to the CBI today.