Press Release

Forimmediate release

Wednesday10 December 2003

Pre-Budget Report: Mixed Fortunesfor Business

Responding to today'sPre-Budget Report, the Institute of Directors (IoD) said it was concerned thatthe Chancellor's forecasts of 3-3.5% GDP growth in 2004 and 2005 appearedoptimistic. The IoD hopes the Chancellor's GDP forecasts prove correct, becauseif they don't, the tax burden will rise more than already projected.

On a positive note the IoD welcomes moves to encourage enterprise, particularlythe Anglo-Irish-Dutch initiative on EU de-regulation.

George Cox, IoDDirector General, said:

"We welcome themoves to stimulate enterprise and the growth of small businesses. We appreciatethat at last there is a growing reaction that over-regulation is stiflingbusiness and we are pleased to see that the Government is beginning to respondto our members' strong concerns about the red tape burden.

"However, thebig issue is the Chancellor's economic forecasts. If his growth projections arenot met he could be forced into imposing higher taxes which would be unwelcomeand would have a serious negative effect on the economy."

Ends 10.12.03 No.216

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Contact Points:

Richard Taylor, PressOfficer, tel. 020 7451 3264

Mobile and out of hours. 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 07764 883420

Email. press@iod.com

Web. www.iod.com

Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs