Press Release

Embargoed until 00:01 hrs
Monday 11 November 2002

IoD CALLS FOR A PERIOD OF STABILITY IN UK TAX SYSTEM

IoD publishes its Pre-Budget Report Comment Paper

The Institute of Directors (IoD) today published its Economic Comment Paperin advance of the Chancellor of the Exchequer's Pre-Budget Report (PBR). TheIoD called on the Chancellor to introduce a period of stability in the UKtax system.

Head of the IoD Policy Unit at the IoD, Ruth Lea, said:

"The single biggest prize that the Chancellor could announce in his PBRwould be a period of stability in the tax system allowing businesses tofocus on creating wealth rather than administering ever more complex taxes.For too long the burden of administering taxes on behalf of the Governmenthas been shouldered by the business community. Now is the time to takestock, step back and stabilise the current system."

The IoD's expectations about the broad content of the PBR are as follows:

* The world economic recovery is looking fragile and much of theoptimism of the first half of the year seems to have dissipated.

* Although the UK has been one of the better performing economies,growth expectations have also weakened here. The IoD expects GDP to grow by1.5% in 2002 and 2.5% in 2003.

* The Chancellor is expected to downgrade his GDP forecasts which were2 to 2.5% for 2002 and 3 to 3.5% for 2003 and refer to the state of thepublic finances.

* No immediate tax increases significantly beyond those alreadyannounced.

Ends
8.11.02 No.130

Contact points:
David Marshall, Director of Public Affairs, tel: 020 7451 3263
mobile and out of hours: 07764 883420

Richard Taylor, Press Officer, tel: 020 7451 3264
mobile and out of hours: 07721 734886
e-mail: press@iod.com
web: www.iod.com

Notes to Editors

1. Copies of the IoD Pre-Budget Economic Comment Paper are available onrequest from the IoD Press Office

2. The Institute of Directors is a non-political independentorganisation with some 55,000 members. In addition to its wide range ofbusiness services, the IoD provides an effective voice torepresent the interests of its members to government and keyopinion-formers. It also brings the experience of business leaders to bearon the conduct of public affairs.