Business Confidence Dives as Firms Face Tax Hikes and Rising Costs

Business confidence has slumped to a more than two-year low as firms sound the alarm over Labour's massive tax raid. A major survey has revealed a grim assessment of the economic situation, with more than half of companies planning to raise prices by early April. Three quarters of the more than 4,800 firms quizzed said the main cost pressure is sustaining jobs - after Rachel Reeves hiked employer national insurance.

The research by trade group the British Chambers of Commerce found business confidence has fallen since the spending statement, with 49 per cent of firms saying they expect turnover to grow in the next year. That was down from 56 per cent last year and the level has not been lower since the aftermath of Liz Truss's mini-Budget in 2022. Three quarters of the more than 4,800 firms quizzed said the main cost pressure is sustaining jobs - after Rachel Reeves (pictured) hiked employer national insurance. A major survey has revealed a grim assessment of the economic situation, with more than half of companies planning to raise prices by early April. Some 55 per cent expect prices to increase in the next three months, up from 39 per cent in a similar poll in the second half of 2024. BCC director-general, Shevaun Haviland, called the situation 'a pressure cooker of rising costs and taxes'. 'Firms of all shapes and sizes are telling us the national insurance hike is particularly damaging,' she said. 'Businesses are already cutting back on investment and say they will have to put up prices in the coming months.' The survey puts more scrutiny on the performance of the economy, with evidence of a slowdown. Keir Starmer has made boosting UK plc his main priority after winning the election last summer. But official figures showed the economy had zero growth between July and September, and that it contracted during Octobe

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