LABOUR’S first Budget has left business confidence at its lowest in two years, new evidence suggests.
In the last quarter of 2024, only 49 per cent of 4,808 companies surveyed by the British Chambers of Commerce (BCC) said that they expected to see an increase in income over the next year – the lowest level since the aftermath of the 2022 mini-budget.
Analysis shows that businesses are feeling more worried about taxation levels than at any point in the last eight years – risking higher prices, fewer jobs, and less investment.
Mel Stride, MP for Central Devon and Shadow Chancellor of the Exchequer, said: “Business confidence continues to dive on the Chancellor’s watch.
“This comes alongside warnings from the latest BCC survey that an increase in employment costs will see prices pushed up.
“Six months ago, Labour inherited the fasted growing economy in the G7, low inflation and low unemployment. The new year sees growth gone, inflation up and business slashing hiring rapidly.
“Labour’s choices mean fewer jobs and higher everyday costs for working people – it is time for the Chancellor to think again.”
Last month the Treasury confirmed that the Chancellor’s ‘Spring Forecast’ would be unveiled on 26th March 2025. There is speculation about whether the Chancellor will use this event to announcement further tax changes, and the coming month will see a lot of political commentary centred around this issue.
