Three tax rises dropped as Election looms

The Government has dropped plans to impose three controversial tax changes in an effort to push through new legislation ahead of the General Election.

Parliament was dissolved on 12 April, forcing ministers to rescind the proposed 10% tax increase on cider after it was met with fierce criticism from opposition parties.

The 10% above inflation tax rise on cider was announced in the 2010 Budget and came into effect at the end of March. However, the increase will now cease on 30 June and prices will be reduced.

The Chancellor also abandoned plans to levy a 50p per month charge on landlines to fund super-fast broadband and the removal of the special tax treatment for furnished holiday lettings.

Ministers are often forced to make concessions in the rush to ensure that bills are approved before Parliament breaks, known as the 'wash-up' period.

While the Conservatives have declared the tax reversal 'a major victory for businesses and consumers across Britain', Labour has insisted that the measures will be re-introduced if the party is re-elected.

Meanwhile, some of the UK's leading business groups have been setting out their priorities ahead of the General Election on 6 May.

Launching its 2010 Election Manifesto, the Forum of Private Business (FPB) has called on the next Government to rebalance UK workplace law in favour of employers.

According to the FPB, small businesses are reluctant to hire new staff as a result of ever-increasing legislation.

Matthew Goodman, FPB Policy Representative, said, 'Many of our members feel that the current burden of employment law weighs disproportionately on their business, creating unreasonable compliance burdens on most small businesses and ruining relationships between employers and employees'.

In addition, the Confederation of British Industry (CBI) is highlighting the need for the Government to set out a 'clear and credible plan' that will return the budget to balance by 2015/16.

Releasing the CBI's 12-point plan for a new administration, Richard Lambert, CBI Director-General, commented, 'Other areas for urgent action include establishing a competitive regime for business taxes so that companies can drive the recovery forward, as well as minimising the scarring effects of youth unemployment'.