UK businesses are planning price rises as confidence falls to record low since Truss Budget | economics

More than half of British businesses plan to increase prices in the next three months, research shows Business confidence in the UK has fallen to its lowest level since the turmoil during Liz Truss's term as prime minister.

Of the 4,800 businesses surveyed by the British Chambers of Commerce (BCC), 55% said they expected to increase prices by April. This is an increase from 39% in a similar survey in the second half of last year.

Concerns about upcoming tax rises have grown sharply since the government unveiled a budget in October that relies heavily on business taxes to raise $40 billion in additional revenue, including $25 billion in employer national insurance contributions (NICs).

Prime Minister Rachel Reeves said she saw no alternative given her huge inheritance from the previous Conservative administration and her desire to invest in the NHS and infrastructure, but this sparked a wave of criticism from business groups.

Labor under Keir Starmer has said it is focused on investment to boost GDP growth, but a string of poor economic data suggests economic conditions have not improved in the six months since the party came to power. I was criticized.

The key revenue-raising measure in the Budget was an increase in employer NICs, which affects almost every business, regardless of whether it is profitable or not. A BCC poll found that 63% of businesses cited taxes as a concern after budgeting, compared to 48% three months ago.

Shevaun Haviland, BCC Secretary-General, said: Worrying echoes of the budget are evident in our survey data. As costs and taxes rise, business confidence falls in a pressure cooker.

Businesses of all shapes and sizes say National Insurance increases are particularly damaging. Companies are already cutting back on investments and will likely have to raise prices in the coming months, he said.

BCC said confidence in whether companies expect sales to increase next year has fallen significantly. Decreased from 56% to 49%.

Financial markets expect the Bank of England to cut interest rates significantly this year, although Bank of England policymakers have said inflationary pressures remain on the UK economy.

Skip past newsletter promotions

Join our business today

Get ready for your work day. All the business news and analysis you need every morning.

Privacy Policy: Our newsletter may contain information about charities, online advertising and externally funded content. Please see our privacy policy for more details. We use Google reCaptcha to secure our website, which is subject to the Google Privacy Policy and Terms of Service.

After newsletter promotion

Last month, the bank underlined the effectiveness of the budget while tempering expectations for UK economic growth, while also highlighting the outlook for uncertainty surrounding global trade as Donald Trump prepares to begin his second term as US president on January 20. Yes. Economists are wary that higher tariffs on U.S. imports could hamper global growth.

A separate business survey, the Purchasing Managers' Index (PMI), pointed to potential job cuts as companies respond to looming tax increases.

The PMI employment index fell to 45.6, the lowest in four years, and companies also said they were planning to raise prices.

Thomas Pugh, economist at RSM UK, who compiled the survey, said: The combination of weak growth and rising inflation is a nightmare trade-off for the Bank of England's Monetary Policy Committee (MPC), which does not want high interest rates to fall. We need to grow more than we need, but we need to keep inflation in check. We believe MPC is cautious in the face of these trade-offs and will make only one cut this year.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos