"Taxes are Heavier than Tigers! British Chamber of Commerce Warns: Business Confidence Drops to Lowest Level Since Mini Budget"

A survey by the British Chambers of Commerce shows that business confidence in the UK has dropped to the lowest level since the mini-budget crisis over two years ago. This survey reflects concerns about the current Labour government increasing taxes. Due to the announcement by UK Chancellor of the Exchequer Rachel Reeves in last October's budget to increase taxes and raise the minimum wage again, most companies expect prices to rise in the next three months. The British Chambers of Commerce stated that the business environment is "weak," with more companies slowing down investment in the past three months than accelerating it. The results of the British Chambers of Commerce quarterly economic survey are unsettling for Reeves, who hopes that businesses will increase investment to boost economic growth. Since the overwhelming victory of the Labour in last July's election, the UK economy has been stagnant, largely due to strong opposition from businesses to the 40 billion (US$49.6 billion) tax hike plan, including a 26 billion National Insurance payroll tax on employers. Shevaun Haviland, Director General of the British Chambers of Commerce, stated: "Our survey data clearly shows the worrying impact of the budget. With the pressure of rising costs and taxes, business confidence has fallen sharply." The British Chambers of Commerce described this survey as the "largest business confidence survey since the budget was announced." The survey found that 63% of companies are now worried about tax issues, the highest level since records began in 2017. Business confidence has "fallen sharply," with only 49% of companies expecting an increase in turnover in the next year, the lowest level since Conservative Prime Minister Liz Truss introduced the mini-budget in autumn 2022, and lower than the 56% before last year's budget. Over half (55%) of companies said they will increase prices to recover costs in the next quarter, a significant increase from 39% before last October. Only 2% of companies said they will reduce prices, raising concerns about a possible rebound in inflation. Haviland stated: "Companies of all sizes have told us that the increase in National Insurance contributions is particularly destructive. Businesses have already been cutting investment and say they will have to raise prices in the coming months." "The UK government is developing long-term strategies in industry, infrastructure, and trade, which is the right approach. But these plans are not helping businesses currently in distress."