UK Businesses Brace for Increased Tax Burden

Marks & Spencer has raised concerns about the rising costs and uncertainty following the Budget introduced by Chancellor Rachel Reeves, which includes a 1.2% increase in National Insurance contributions. CEO Stuart Machin noted that while the retailer remains financially healthy with a 17% rise in profits, the long-term impact of the Budget on costs is uncertain, especially with labor cost inflation at 10%. Meanwhile, small businesses are also grappling with rising health care costs, which have increased by 3.5% over the past year, making it challenging for them to maintain competitive benefits while managing profit margins. Haringey Council is facing a £51.4m funding shortfall due to a decade of underfunding and increasing demand for social services amid a housing crisis, which is straining its budget. The council's draft budget highlights the need for a fairer funding settlement from the government to address these ongoing challenges. Local businesses and councils alike are expressing concerns about the growing financial pressures stemming from government policy changes and economic conditions.