Responding to the Chancellor’s pre-Budget speech earlier today, Chris Fletcher, Policy Director at Greater Manchester Chamber of Commerce, said: “With growing anxiety surrounding the upcoming Budget announcement on 26th November, the Chancellor sought this morning to set the tone and provide early insight into what might unfold later this month.
“It is quite clear though that the Chancellor’s options are very limited and it almost seems inevitable that there will have to be some rise in taxation. The Chancellor set out one of her favoured tactics of listing the issues that the government is having to deal with, some, such as the impact on trade of US tariffs are recent others less so but what was clear is that the economy is in a much more fraught state than 12 months ago.
“Whilst the focus is increasingly on tax increases, it’s important to recall that employers have already absorbed a substantial tax burden through the Employer NICs hike announced last year and enacted in April. The ongoing impact of this decision is significant and is one of the main barriers to growth that is hitting the UK economy at present. Our latest Quarterly Economic Survey reveals a sharp decline in business confidence, with mounting concern over the impact of further taxation on business.
“Everyone wants a stable, growth-oriented economy where businesses can invest and hire with confidence. Yet, following the Chancellor’s remarks this morning, the only certainty seems to be heightened expectations of further tax rises - without any clarity on their nature or scope.”