CBI Warns UK Budget Tax Hikes Hurt Growth

The Confederation of British Industry (CBI) warns that recent tax rises in the UK Budget, including a £25 billion increase in National Insurance and a rise in the minimum wage, will negatively impact economic growth, investment, and employment. Rain Newton-Smith, the CBI's chief executive, highlights that these measures will strain profits and competitiveness, pushing businesses to cut training, jobs, and investment plans, particularly affecting sectors like retail and hospitality. Despite the Labour government's intention to boost economic growth and address a £22 billion deficit, business leaders argue that the fiscal measures will hinder investment opportunities and lead to unintended economic consequences. A CBI survey reveals that 61% of its members view the UK as a less attractive investment destination post-Budget, with many planning to reduce staff and pay rises. While Labour emphasizes political stability, the Office for Budget Responsibility has downgraded growth forecasts, and the British Retail Consortium warns of rising costs for businesses and consumers.