National Insurance: Firms to pay more than half of Budget tax rises

With an increased tax burden on businesses, particularly smaller ones, the outlook for sectors sensitive to employment and operational costs (like retail and hospitality) appears negative. This could lead to reduced consumer spending, more layoffs, and hindered economic growth overall.

Multinational corporations may manage increased costs better than smaller businesses. However, if they also struggle with the new tax climate, it could reflect poorly on their stock performance. The potential for increased costs being passed to consumers could also lead to a decrease in consumption, affecting revenues.

Investors may look toward ETFs focused on healthcare or provisions essential regardless of economic fluctuation, as these sectors may remain resilient amidst the tax increases affecting other sectors.