Howard slams 'poisonous' taxes

Michael Howard: Business is suffering long-term damage

Conservative leader Michael Howard has said the government is harming business with a raft of new taxes and red tape.

Speaking at the CBI conference, he said an average of 15 new regulations were being introduced every day.

Mr Howard said the extra regulations were "like a slow-acting poison" causing long-term harm.

A spokesman for the Cabinet Office said 95% of the new regulations had little or no impact on business and many were to do with facilitating road repairs.

In all, 39% of the regulations involved traffic restrictions that would allow road building, repairs and improvements to go ahead, or air navigation orders, said the spokesman.

Mr Howard also accused the government of "being locked in a vicious circle of ever-higher taxes and ever-failing public services."

Long-term damage

Mr Howard is keen to win support from the business community, with CBI leaders admitting that its support for the Labour government is wavering.

Earlier in the week, the CBI director general Digby Jones said the business vote was "up for grabs".

The effects of these adverse changes have taken time to feed through... but, like a slow-acting poison, they are now working their way through the system Conservative leader Michael Howard

Mr Howard accused the government of threatening the long-term competitiveness of the economy through its new taxes and regulations.

"The supply side reforms of the 1980s, in which burdens on business were reduced, took many years to feed through," he said.

"But over the last six and a half years they have been eroded, and in many cases reversed.

"Like the reforms of the 1980s, the effects of these adverse changes have taken time to feed through.

"But, like a slow-acting poison, they are now working their way through the system. They will do real damage for years to come."

'Performance and results'

After his speech, Mr Howard was questioned by the CBI director general Digby Jones on why his new shadow cabinet did not include a shadow trade and industry secretary.

"The wealth and enterprise side of life doesn't seem to get enough importance on your radar screen," Mr Jones said.

But Mr Howard disagreed.

"Oliver Letwin, the shadow chancellor, will be responsible for trade and industry matters, and that is very important," he said.

"I'm not interested in titles or what things are called. I'm interested in performance and results.

"And if you're interested in performance and results, I hope to convince you that I am your man."