The UK chancellor will deliver his pre-Budget report on Wednesday and is expected to reveal cuts and savings in public services as well as new ways to raise more money from Britain’s labouring economy. David Frost, the BCC’s director general, warned Darling against raising new taxes from businesses or creating “any measures that might damage investment, growth and job creation”. He also said that public spending cuts should be considered across the board including in politically sensitive areas such as health, education and policing. “Given the perilous state of the public finances, we cannot afford any sacred cows when it comes to making spending cuts – no matter how politically desirable it may be,” said Frost in a statement today. “Reform of the public sector must be the cornerstone of a credible plan to reduce spending. Freezing public sector pay and reforming pensions must be part of that plan, and action in these areas should start now.” His warning was contained within a report by the BCC setting out the organisation’s expectations for future UK economic performance. The report gave the following (gloomy) stats: • The jobless rate will continue to rise next year, although more slowly than in 2009. • Economic output declined 4.6 per cent this year, but will grow modestly next. • Britain’s fiscal position remains unsustainable with public debt in excess of 90 per cent of GDP. • More monetary stimulus may be needed to prevent a double-dip recession. Related articles:Would a flat tax solve our economy woes?Pre-Budget report 2009: Labour’s poison pill?
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