Rachel Reeves was last night accused of turning her back on economic growth as business braces for a Budget onslaught that will drive up costs and threaten livelihoods.
The Institute of Directors described the triple-whammy as a ‘perfect storm’ while the Institute for Fiscal Studies said the higher costs facing business could cost jobs. While Labour insists this only covered national insurance on employees, not employers, critics said working people would still be hit through lower pay and lower job prospects. ‘I can’t think of any tax that doesn’t affect people who work,’ said IFS director Paul Johnson.
Alexandra Hall-Chen, an employment expert at the Institute of Directors, said: ‘Any one of these factors will have a significant impact on business costs. Pubs and shops face a £2.5bn increase in their business rates bill when Covid-era support expires at the end of March next year.