Following the 2025 Spending Review, experts have warned that Chancellor Rachel Reeves will have to raise taxes in the Autumn Budget to fill a shortfall of up to £23 billion.
Economists at Capital Economics warned that the government will need to hike taxes if it wants to avoid adversely affecting the markets.
Research carried out by market research firm Censuswide has revealed that a third of business owners are planning to cut jobs as a result of rising employer National Insurance Contributions (NICs).
46% of owners polled also stated they are planning to increase prices in order to help cover the costs associated with the rise.
British workers now benefit from the second highest minimum wage in Europe, with an average monthly income of £1,984 before tax. The National Living Wage increased by 6.7% to £12.21 an hour this April, making the UK second only to Luxembourg, where workers earn £2,183.
The British Chambers of Commerce (BCC) has , urged the Chancellor not to raise taxes further, stating: “The Government needs to use the tax system to incentivise growth, not kill it.”
The UK Government has announced its long-awaited industrial strategy, marking a significant shift in economic policy. Sir Keir Starmer stated that the strategy “marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.”
Speaking at this week’s BCC conference the Prime Minister said he does, as businesses “don’t hold back” when they raise concerns.
But he added that many people recognise that a secure, protected workforce is good for business, and drives up productivity.
Most of what is in the employment rights bill is done by good businesses and is good practice anyway, he argued.
Starmer pledged to keep working with businesses about the bill, but he doesn’t sound close to a u-turn.
So what do you think?
Do you believe him and will it make any difference to your plans for the Autumn?