Majority of Firms Say Reeves’ Tax Rates Are Main Concern and Plan to Raise Prices – Guido Fawkes

Majority of Firms Say Reeves’ Tax Rates Are Main Concern and Plan to Raise Prices

Tax minister James Murray is on the morning rounde discussing the government’s four-week consultation with businesses on retaliatory tariffs and implying it’s an essentially pointless exercise because they would be so damaging:

“I think it’s clear that businesses in Britain don’t want a trade war uh they want an economic deal between the UK and the US and that’s why we’ve been negotiating intensively to secure a deal.”

The British Chambers of Commerce have done their own overnight research with businesses. Since its last extensive survey immediately post-Budget the picture is far from rosy:

• 55% of firms say they will raise prices in the next three months.
• 59% of firms say tax is their biggest concern. That’s the second highest level since records began in 2017. Thanks Rachel…
• Concern about inflation is up on the previous quarter – 53% compared to 47% post-Budget.
• 48% of firms say they expect their turnover to rise over the next twelve months, down from 49% last time. Lowest figure since 2022’s mini budget…
• 73% of businesses say labour is their main cost pressure. Now taxed more highly…
• 26% of firms have cut back on investment plans in the past three months, up from 24% last time.

That’s not a cocktail of responses business will be happy to report or the Treasury will be happy to see now it is having to grapple with tariffs. To top it off the chances are Reeves will come back for more by the autumn…