CBI urges fiscal restraint

As a merry-go-round of cut or not to cut continues this morning's latest participant is the CBI which has told the Chancellor that he should balance the public finances sooner rather than later but is right to avoid big cuts this year to protect the fragile recovery.

CBI Director General Richard Lambert presenting the CBI's budget recommendations said that.

"The degree of fiscal tightening we'll need is more challenging than other G7 countries. But one real advantage is that the maturity of government debt is longer than other countries, and we're confident the UK's credit rating is sustainable,"

Writing to the Chancellor they recommend that the budget is balanced two years earlier than forecast by Darling by the end of fiscal year 2016.

An earlier date for budget balance should be achieved through a combination of lower overall spending and public service reform, rather than resorting to damaging tax rises at time when the economy is still fragile.