UK companies bruised and not ready for budget study finds
Firms remain ‘bruised’ with no improvement in business sentiment, research suggests.
The British Chambers of Commerce said a survey of 4,600 businesses across the UK found confidence and investment levels remain at those seen in 2022.
Published ahead of next month’s government budget, the study found just under half of respondents are expecting increased turnover in the next year, while one in five expects a decrease.
One in four said they have scaled back investment plans, rising to more than a third of hospitality firms.
Tax remains the biggest concern for businesses alongside increased worries over inflation, said the BCC.
David Bharier, head of research at the BCC, said: ‘Ahead of the chancellor’s statement next month, our survey shows many firms remain bruised and are not ready for another budget battering.
‘The research reveals no clear improvements to key indicators we track. For 12 months, [small to medium-sized enterprises] have told us the same story: rising costs, weak investment and little sense of relief on the horizon.
‘The employer Nics (national insurance contributions) increase has been the most widely cited source of pressure, hitting investment and pushing up prices. The proportion of businesses expecting to raise prices remains worryingly high, driven primarily by labour costs. Inflation now sits alongside taxation as a top concern.
‘The global shift towards protectionism and tariffs has also been a major compounding factor.’
source: PA
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