British business leaders have cautioned Chancellor Rachel Reeves against introducing further tax rises in the upcoming Budget, warning that firms are still reeling from previous fiscal measures. The British Chambers of Commerce (BCC) has reported that confidence among employers remains at a three-year low, with companies struggling to absorb the £40 billion in additional taxes introduced in last year’s Budget.
That package included a £25 billion increase in National Insurance Contributions for employers, raising staffing costs and triggering job losses and price rises across multiple sectors.
According to a BCC survey of 4,600 firms, tax remains the most pressing concern for UK businesses, with 59 per cent of respondents identifying it as a major issue - up sharply from 36 per cent before last year’s Budget.
David Bharier, head of research at the BCC, said companies were “bruised” and “not ready for another Budget battering.” He urged the Chancellor to rule out any additional business tax hikes, emphasising that “urgent action” is needed to restore confidence and safeguard economic growth.
Concerns are mounting that Reeves could unveil fresh tax measures worth up to £30 billion to address fiscal pressures caused by weak growth and rising government expenditure. Shadow chancellor Mel Stride echoed business concerns, arguing that “confidence in the economy is collapsing” due to decisions taken by the current government.
A separate report by KPMG and the Recruitment and Employment Confederation revealed that demand for new staff has fallen as employers delay hiring amid uncertainty over the Budget and the wider economy.
Jon Holt, chief executive of KPMG, said firms are acting cautiously given “little positive news” on the economic outlook. Inflation has climbed to 3.8 per cent - almost double the 2 per cent target – and now stands as the highest rate among G7 economies.
Despite growing domestic unease, Reeves has promoted international progress, visiting Sipsmith Distillery in West London to mark the UK-India trade deal signed in July. The agreement will see tariffs on UK gin and Scotch whisky halved from 150 per cent to 75 per cent, before dropping to 40 per cent within a decade.
I am Molly Monks, a licensed insolvency practitioner at Parker Walsh. I have over 20 years of experience helping directors with the financial struggles they may face. I understand that it can be overwhelming and stressful, so I offer practical straightforward advice, which is also free and confidential. I spend time with directors to get a good understanding of their business and their goals, therefore providing the best tailored advice possible.
Email: molly@parkerwalsh.co.uk
Phone: 0161 546 8143
WhatsApp: 07822 012199
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