Businesses Warn Sunak Off Further Punitive Tax Rises - Brite Books

With the Autumn Budget and spending review on the horizon for 27 October, economists and industry leaders have warned the Chancellor of the Exchequer that the UK’s economic recovery could be blown off course if businesses are faced with a new set of punishing tax hikes. 

The stern words towards Rishi Sunak came in the wake of data from the Office for National Statistics (ONS) suggesting that the UK is on the verge of returning to its pre-pandemic strength.  

“It’s crucial that businesses should now have the confidence to invest” 

Chief economist at the Institute of Directors (IoD), Kitty Ussher, said to CITY A.M.: “Our economy is now within sight of its pre-pandemic size. To maintain an upward path, particularly as government support is phased out, it’s crucial that businesses should now have the confidence to invest.” 

Recent reports have centred on businesses’ concern about the burden of escalating energy costs, rising staff costs, and supply chain issues that have been compromising their ability to deliver their normal services. Now, there are worries that on top of these factors, higher tax rates could derail the recovery. 

Research by the IoD has found, for example, that the looming 1.25 percentage point increase in National Insurance will prevent about three in 10 firms from expanding. This, in turn, will hold back the UK’s broader economic growth. 

Also commenting to CITY A.M. was Mike Cherry, national chair of the Federation of Small Businesses (FSB). He said that “the cost of doing business is rising every day and as small firms try to navigate their way out of the pandemic, we need to see more done to encourage growth. Imposing further taxes on small firms who are the backbone of our economy is not the way forward.” 

Our low-cost bookkeeping services could provide crucial support to your growth 

With GDP expanding by 0.4% in August – leaving the economy still 0.8% smaller than it had been prior to the pandemic – it’s clear that the UK’s economic recovery remains a relatively fragile one. Even small measures, then, could make a significant difference to your business’s growth prospects for the months and years ahead. 

Embracing the latest cloud accounting tools is just one such move your firm could choose to make, to help free up time from financial admin. Our low-cost bookkeeping services here at Britebooks enable firms from across the sectors to make this transition with minimal hassle. 

To learn more about how our proactive team can get you quickly and easily set up with Britebooks, simply email or phone us now in Wellington or Plymouth.  

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Dec 8th 2021 04:01. Viewed 210 times.

Share on APSense

Comments