The British Chambers of Commerce has called for the pension triple lock to be scrapped as part of a package of measures aimed at boosting growth and cutting the cost of doing business.
Its Budget submission also calls for the Energy Profits Levy to be replaced by the proposed Oil and Gas Revenue Levy from the start of the new financial year, a key ask for the North Sea energy sector.
The BCC urged Chancellor John Healey to increase the state pension in line with inflation instead of maintaining the triple lock, estimating the change could save the Treasury £3.3billion over two years.
It wants the savings used to cut employers’ National Insurance contributions for 21 to 24-year-olds, arguing this would encourage firms to hire younger workers and reduce long-term welfare spending.
BCC director general Shevaun Haviland warned against further increases in business taxation, saying: “The Chancellor must use his first budget to cut the cost of doing business, allowing everyone to reap the economic benefits.
“Piling more taxes on firms would be a road to ruin, and the quickest way to destroy business confidence.”
The intervention comes ahead of Mr Healey’s first major economic speech as Chancellor today, when he will promise to reduce “complexity and red tape” and set out plans for closer collaboration between Westminster, local government and business to drive investment and productivity.
FSTE100
The UK's flagship share index, the FTSE 100, was down 18-points at 10,812 shortly after opening this morning.
Brent crude oil futures were up 0.72%, sitting at $96.97 a barrel this morning.
Companies reporting
- Ashmore Group - Full Year Results
- Gamma Communications - Half Year Results
- Standard Life - Half Year Results