HIGH tax fears ahead of next month’s Budget have sent business confidence to its lowest level in three years, a survey shows.
Company bosses fear a Groundhog Day experience as concerns grow they will bear the brunt of another slew of punishing taxes.
Optimism levels appear to be in freefall as tax concerns hit profits growth, recruitment and investment plans.
Businesses have now lowered their expectations for the year ahead as muted domestic sales growth also drags down confidence — now at its lowest level since the end of 2022.
Six in ten bosses say the tax burden is a growing challenge — a historic high for the survey and a big rise from just one in 16 making the claim towards the end of 2020.
They also say that they were hurt by the £25billion National Insurance tax raid — and are now concerned about rises in next month’s Budget.
Nearly half say regulatory requirements are the second biggest worry in a push for better performance.
It comes ahead of the two-year roll out of a new workers’ rights package which will heap more red tape on employers grappling with costs.
Concerns have been raised over giving day-one rights to workers and bolstered trade union rights.
Business sentiment is found to be weakest in the property sector, followed by retail companies, the research by the Institute for Chartered Accountants in England and Wales reveals.
CEO Alan Vallance said: “It’s Groundhog Day for Britain’s businesses as we enter another run up to a Budget with poor growth, strained public finances and a fear that business will once again bear the brunt of higher taxes.”
Chancellor Rachel Reeves is expected to try to find about £30billion to help plug the gap in the nation’s finances.
But she has been given an extra £2billion of wriggle room after borrowing stats showed inaccurate data on VAT receipts.
