The Confederation of British Industry (CBI) has warned that business margins are being squeezed and profits are being hit as a result of the measures announced by Chancellor Rachel Reeves at the Autumn Budget.
A post-Budget survey carried out by the business group showed that two thirds of firms believe that the measures announced will damage UK investment, with half of businesses seeking to reduce headcount as a result.
The CBI has called on the government to take action on the ‘pressing challenges’ facing business, including reforming the business rates system, improving flexibility of the Apprenticeship Levy and building for the long-term by using the Industrial Strategy to ‘mobilise the everyday economy’.
Speaking at the CBI’s Annual Conference, Rain Newton-Smith, CEO of the CBI, said: ‘Tax rises like this must never again be simply done to businesses. That’s the road to unintended consequences. From now on we need an elevated partnership for a higher purpose.
‘Too many businesses are having to compromise on their plans for growth.
‘National Insurance Contribution (NIC) rises are one lever government has chosen to pull that’s piled on the pressure. So we must open a valve to ease that.’
05/12/2024
View all >
17/11/2025
Budget choices will determine UK’s growth
Chancellor Rachel Reeves must use the Autumn Budget to make the bold decisions necessary to get the economy firing, says the Confederation of British Industry (CBI).
READ MORE
Self-employed overcounted for decades
Official statistics have overstated the size of the UK’s self-employed population for two decades, according to the Institute for Fiscal Studies (IFS).
AI will shrink headcount
One in six employers expect AI to shrink their workforce over the next year, with junior roles most at risk, according to the CIPD.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.