The Chancellor of the Exchequer in London has made a promise not to increase business taxes for the next five years, which has been welcomed by many in the business community. This decision comes in response to concerns raised by various businesses regarding the potential impact of the Labour Party’s £40 billion Autumn Budget.
Andreas Adamides, CEO of Helm, the UK’s largest entrepreneur network, expressed relief at the Chancellor’s announcement, stating that it provides much-needed clarity and stability for businesses. He mentioned that the uncertainty surrounding potential tax hikes has been challenging for many businesses, causing them to struggle with mounting costs and changing policies.
Despite this positive news, many businesses are still grappling with the impending National Insurance rise set to take effect in April. A recent poll conducted by Helm revealed that 60% of scale-up businesses are hesitant to hire more staff due to the proposed increase in National Insurance. Additionally, 59% of businesses surveyed indicated that they will delay hiring new employees because of the upcoming employer NI increase.
Helm’s poll was conducted among its 400 members, who collectively generate over £8 billion in annual turnover. The average member of Helm is the founder of a company with an annual turnover of £21 million. The results of the poll highlight the real concerns and challenges that many businesses are facing as they navigate through uncertain economic conditions.
Overall, the Chancellor’s commitment to not raising business taxes further over the next five years has provided some reassurance to businesses in London. While the decision is a step in the right direction, it is essential for policymakers to continue listening to the concerns of the business community and take steps to support their growth and success in the future.
