News Article - 11 July 2007
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The Confederation of British Industry (CBI) has called for a fair and effective taxation system amid concerns that there may be a knee-jerk reaction to demands for higher taxation of private equity returns.

Director-general of the CBI Richard Lambert raised concerns that entrepreneurs may begin to move away from London as an investment centre to New York.

He also stated that non-domicile tax status needed to be examined in greater detail, adding that the capitalism of private equity and hedge funds was contributing to "the general sense of insecurity and unfairness that is already a consequence of global trade and technology".

Mr Lambert said that in many parts of the developed world, the benefits of growth had flown more to business owners than to labour, warning that business could be seen as a problem rather than a solution to the challenge of being aware of the social impact of capitalism.

Earlier this month the CBI called for a pause before the next interest rate rise to avoid "overkill" on businesses.

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