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U.K. Business Warns Tax Hikes Risk Strangling Economic Growth

  • CBI chief says higher levies could cut the recovery short
  • Government will vow Monday to support 425,000 jobs a year
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U.K. Can Start Looking at Fiscal Tightening: TD's Kumra

U.K. Prime Minister Boris Johnson risks strangling growth with higher taxes on business to fix the public finances in the wake of the coronavirus pandemic, the country’s biggest business lobby said.

The blunt criticism comes less than a week after Johnson and Chancellor of the Exchequer Rishi Sunak raised payroll levies on workers and companies to help fund health spending. But at a time of ultra-low government borrowing costs and a recovery that’s starting to stumble, many have questioned the timing.