Tax fears hitting firms' confidence, says business group

Published On Jan 5, 2025, 5:30 PM

The confidence of UK firms has fallen to the lowest level in two years, primarily due to concerns over rising costs and taxes following the recent Budget announcement, which included a rise in national insurance contributions. A survey by the British Chambers of Commerce (BCC) indicated that 63% of businesses are anxious about taxes, a significant increase from the previous year. Over half of the firms surveyed expect to raise prices, and many are considering measures such as reducing headcount to cope with rising costs. This downturn in confidence is compounded by the lack of economic growth reported, leading to warnings of potential job cuts and further price hikes.