*

BT CEO says government's November budget expected to be

'very

difficult'

*

Says already at peak government-inflicted costs

*

Comes after criticism from Eli Lilly ( LLY ) boss over UK's drug

pricing

policy

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Also says investors need fiscal and regulatory stability

By Paul Sandle

LONDON, Sept 24 (Reuters) - The boss of BT said

the burden of "government inflicted" taxes and compliance was 10

times higher in Britain than in Europe, as she warned that

uncertainty about any further increase would deter the

investment the country needed.

Chief Executive Allison Kirkby said BT and the wider

telecoms sector could be a catalyst for economic growth but

investors needed certainty that they could make a return.

"We've invested 25 billion pounds, the majority of that into

what is Europe's largest, fastest, highest quality fibre

footprint," she said at the Connected Britain conference on

Wednesday.

"If it's truly adopted by citizens, businesses and

enterprises, it can fuel real growth."

The business and trade department did not immediately

respond to a Reuters request for comment on Kirkby's comments,

which came after U.S. drugmaker Eli Lilly ( LLY ) boss Dave Ricks

labelled Britain as "probably the worst country in Europe" for

drug prices.

PEAK GOVERNMENT-INFLICTED COSTS

BT's Openreach networks arm said on Wednesday its fibre

roll-out had reached the milestone figure of 20 million homes,

with take-up running at 38%.

Ahead of what she said would be a "very difficult" budget in

November, Kirkby said BT had looked at the government-inflicted

costs it was paying.

"We pay in business rates, energy levies, and other costs

associated with regulation and compliance 10 times the amount

our peers pay in countries like Germany and the Netherlands,"

she said.

"So we're already at peak government-inflicted costs."

She said BT could be a showcase for the investment Britain

needed in water, energy, transport and other infrastructure.

"What do investors need? They need certainty that they are

going to get a return on that investment and they get that

certainty through stability on regulatory and fiscal policy,"

she said.