Rishi Sunak has been warned of a major risk threatening Brexit by CBI boss Tony Danker, urging the Prime Minister to step in and secure the UK’s post-Brexit future. Mr Danker, the director general of the Confederation of British Industry argued that the “best guarantor of Brexit is an economy that grows”, adding: “Its biggest risk is one that doesn’t.” He urged Mr Sunak to take “tough choices for growth”.
This comes after the Chancellor’s mini-budget included a swathe of tax rises and spending cuts.
Addressing delegates at the CBI, Mr Danker said: “I know that some Conservative politicians today feel that this issue is the fault of Europe, Mr Danker will say.
“But the biggest regulatory barriers facing businesses today are based on British laws, created by a British parliament, and administered by British regulators.”
He added: “Boris Johnson achieved a deal with the EU that allows us to continue to trade tariff and quota-free with our biggest trading partner. There’s some good stuff in there. Currently locked up.
“But still we argue over the Northern Ireland Protocol. Still we argue over sovereignty.
“Get round the table, do the deal, unlock the Trade and Co-operation Agreement.
“I say to Brexiteers, the best guarantor of Brexit is an economy that grows. Its biggest risk is one that doesn’t.
“Now I know that some of these things will not be popular with politicians but while I have no problem with Government taking tough choices to bring stability, I want them to also take tough choices for growth.”
Last week, the Chancellor announced a £55billion plan for tax hikes and public spending cuts in his Autumn Statement in the House of Commons yesterday morning.
Mr Hunt’s package included around £30billion in spending cuts and £24billion in tax rises over the next five years.
He announced that the threshold for paying the 45p rate of tax would be reduced from £150,000 to £125,140 from 6 April 2023.
Meanwhile, the income tax personal allowance, higher rate threshold, main national insurance thresholds and inheritance tax thresholds will be frozen until April 2028.
This will mean that more Britons are likely to end up with more tax, as they will be dragged into higher bands as a result of soaring inflation.
Mr Hunt also announced a new windfall tax on energy firms, which will be used to help pay for Government support for household energy bills.
Despite previous Government objections to a windfall tax, Mr Hunt told the Commons: “I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices.
Taxes are set to rise to their highest level in relative terms since World War 2.