Business groups have reacted to Chancellor Rachel Reeves' Autumn Budget speech.
The Confederation of British Industry (CBI) said that the Chancellor 'had
difficult choices to make to deliver stability for the economy'.
Rain Newton-Smith, Chief Executive of the CBI, commented:
'A more balanced approach to our fiscal rules which prioritises capital
investment should help to unlock private sector investment in our
infrastructure and net zero transition over the long-term.
'While the Corporation Tax Roadmap will help create much needed stability,
the hike in National Insurance contributions (NICs) alongside other
increases to the employer cost base will increase the burden on business and
hit the ability to invest and ultimately make it more expensive to hire
people or give pay rises.'
Meanwhile, Shevaun Haviland, Director General of the British Chambers of Commerce
(BCC), labelled the fiscal event a 'tough Budget for business'. She
continued:
'While some protection for smaller firms is welcome, the increase in employer
NICs will place a further cost burden on business. This, coupled with a 6.7%
increase in the National Living Wage (NLW) means many firms will find it
more challenging to invest and recruit in the short-term.
'But the Chancellor has looked to offset the upfront hit on firms by
outlining a longer-term framework to provide stability for the
economy.'
The Institute of Directors (IoD) branded the Autumn Budget as offering
'short-term pain for the business community'.
Roger Barker, Director of Policy at the IoD, said:
'The government has chosen to impose a significant new tax burden on business
as a means of achieving an immediate boost to its public sector spending
priorities. The risk is that this will exert a negative impact on business
confidence, with worrying implications for the economy's future growth
trajectory.'
Internet links: CBI BCC
IoD