Rachel Reeves, the Chancellor, announced at the CBI annual conference that she would not introduce any further tax increases. This statement came in response to growing concerns from the business community about her £40 billion budget which includes a hike in National Insurance contributions. Business leaders criticized the move, claiming it would negatively impact job creation, growth, and investment. CBI chairman Rupert Soames described the situation as treating businesses as a ‘cash cow’.
The CBI reported that two-thirds of its members were cutting their recruitment plans post-Budget, shifting to crisis containment and damage limitation modes. Despite criticisms, Reeves remained firm, stating that the Budget aimed to provide necessary stability for growth and that public services would have to adapt to living within their means, with no additional public spending increases for the next four years