Businesses might be breathing a sigh of relief at no further tax increases in the Chancellor’s Spring Statement, but they still have to navigate choppy economic waters.
Rachel Reeves kept her promise of zero tax rises but with slower than expected growth predicted it will make it a difficult environment in which to grow.
Businesses have expressed worry about the planned increase in employers’ National Insurance, anticipating it would hinder recruitment, while many expect to raise prices to counteract increased labour costs. Additionally, firm anticipate reducing future wage settlements, and many expect to cut back on growth investments.
Businesses are also expressing unease about the changes to the National Minimum Wage, where they expect higher wage costs for employees at this level, whilst predicting increased costs for those earning above it.
