Three-Quarters of Firms Blame Taxes for Low Growth as Reeves Rolls Pitch for More Hikes – Guido Fawkes

Three-Quarters of Firms Blame Taxes for Low Growth as Reeves Rolls Pitch for More Hikes

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The Adam Smith Institute has executed a massive survey of 192 UK employers with almost 100,000 staff. It’s not pretty for the Treasury…

77% of those employers expressed ‘low or very low’ confidence in the UK economy with only 4% on a ‘high or very high.’ Average business confidence out of 10 was 2.6. 75% of respondents tax on profits was a major concern – the highest of all issues. Inflation and energy costs followed behind on 71% and 64% respectively. Businesses are saying taxes are bad enough already…

At the same time a panicked Treasury is now briefing that the “world has changed” since Reeves was handed £9.9 billion in ‘fiscal headroom’ back at the budget – the breathing room is all gone. So far hacks are told welfare cuts and Pat McFadden’s ‘efficiency reforms’ in the Civil Service will cut costs to satisfy the OBR. Pitch-rolling going on for more “tough decisions” on tax later in the year…

Ruth Curtice, the chief executive of the left-wing Resolution Foundation – introduced only as “a think tank which focuses on people of lower incomes” – appeared on the Today Programme to insist that Reeves shouldn’t cut welfare because of child poverty and should raise taxes instead. Extra tax is clamoured for by large wings of the parliamentary Labour party and No 10 policy unit. The Chancellor has broken her word on tax before…