Tony Danker, Director-General of the Confederation of British Industry (CBI) is likely to warn Thursday, “ministers are in danger of trapping the UK in a future of low growth and high taxes, per the Financial Times.

Key quotes

“The UK tax burden for business was already “at the highest sustained level in peacetime” ahead of the planned 6 percentage point rise in corporation tax to 25 percent from April 2023, which will push the UK down to 31st in the OECD’s competitiveness rankings.”

“It’s a plan that increases business taxes massively without reliefs for investment . . . that funds green investment more than before but less than our competitors . . . that funds a narrow apprenticeship programme while skills shortages continue to hinder growth . . . that stops immigration for skills we need but offers no alternative to get them.”

The level of growth would not be enough to “avoid permanently high taxes given spending pressures.”

This comes ahead of the Bank of England (BOE) monetary policy decision, with a 25-bps rate hike fully priced in by the market.

GBP/USD reaction

GBP/USD was last seen trading at 1.3556, down 0.14% on the day.