Brown warned on raising taxes

GORDON BROWN has been warned by the country's accountants that he should beware of damaging the economy by putting up taxes to raise billions for the ailing health service. The Chancellor, whose April Budget is expected to unveil a significant tax increase to fund the NHS, could change the limits on national insurance or personal allowances to invest up to £8bn more in hospitals and surgeries.

The Institute of Chartered Accountants said the need for extra cash should not jeopardise the enterprise culture by overburdening businesses with tax and making them uncompetitive.

Ian Hayes, chairman of the Tax Faculty at the Institute, said: 'Raising tax rates is never going to be popular. The Chancellor has a number of ways in which he can raise the money, but any decision will have a knock-on effect on UK business. If he gets it wrong, the shock may damage UK business and the enterprise economy. These are the keys to prosperity upon which the UK's healthy tax revenues are based.'