IPA warns agencies not to blow Brown's budget bonanza

- Britain's agencies have been warned not to squander the windfall coming their way as a result of Gordon Brown's decision to cut Corporation Tax in Tuesday's Budget.

- Britain's agencies have been warned not to squander the windfall coming their way as a result of Gordon Brown's decision to cut Corporation Tax in Tuesday's Budget.

The Institute of Practitioners in Advertising says the money saved should not be wasted, but used to help safeguard the industry's long-term future.

Nick Phillips, the IPA's director-general, said: "Margins are getting better but are still not what they were at the end of the 80s. So it's important that agencies re-invest what they save on bright recruits, training and software systems. The money shouldn't just be snatched up as profits to be divvied out."

The IPA predicts the budget will spark major advertising activity by car makers with small and environmentally-friendly models in their ranges.

It also expects the Chancellor's extra help for poorer working families to provide fresh impetus for promotional activity by supermarkets, high street electrical retailers and out-of-town DIY sheds.



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