British Businesses Brace for Budget Blowback: Tax Hike Sparks Investment Cutbacks

British businesses are reeling from a £25 billion tax increase due to the latest budget, leading to cuts in training, investment, and jobs. The Confederation of British Industry reports that a majority of its members view the UK as a less attractive investment opportunity amid looming economic challenges.

British businesses have been blindsided by a sudden £25 billion tax hike announced in last month's budget, prompting plans to slash training, investment, and jobs, according to the Confederation of British Industry (CBI).

CBI Chief Executive Rain Newton-Smith warned that the rise in National Insurance and adjustments to the threshold have added a substantial burden to businesses, compounding the challenges posed by increases in the National Living Wage and potential changes under the Employment Rights Bill.

Prime Minister Keir Starmer and Finance Minister Rachel Reeves defend the move as essential for funding public services, including the NHS. However, cautious optimism for economic stability under Labour contrasts with concerns over reduced business profits impacting investment, as the UK lags behind in international investment and productivity standards.

(With inputs from agencies.)