Tax worries knock UK business confidence, survey shows

BRITAIN-ECONOMY/BUSINESSSENTIMENT:Tax worries knock UK business confidence, survey shows

Reuters
Published9 Oct 2024, 04:32 AM IST
Tax worries knock UK business confidence, survey shows
Tax worries knock UK business confidence, survey shows

By Suban Abdulla

LONDON, - British business confidence fell in the third quarter as tax worries hit investment, according to a survey of accountants that chimes with similar concerns from other business groups before the new Labour government's first budget.

The Institute of Chartered Accountants in England and Wales said on Wednesday that its quarterly Business Confidence Monitor fell to 14.4 in the three months to September, the first decline in a year and down from 16.7 in the previous quarter.

"The findings show that businesses are troubled by the tax burden and increasingly reluctant to invest," ICAEW chief executive Alan Vallance said.

Finance minister Rachel Reeves has warned that taxes will probably have to go up in her Oct. 30 budget after she said she had uncovered a 22 billion pound hole left in this year's public finances by the previous Conservative government.

The ICAEW said 29% of companies cited the tax burden as a growing challenge, the joint highest in the survey since it started in 2004 and well above the average reading of 16%.

A separate survey from the British Chambers of Commerce on Tuesday also showed a decline in business morale due to concern about the impact of the budget on tax levels.

The government has ruled out increases to the rates of income tax, corporation tax, value-added tax and National Insurance social security payments. But the ICAEW said businesses were concerned about other tax hikes including lifting capital gains tax.

Businesses have already slightly scaled back plans to increase investment. Firms in the ICAEW survey said they planned to increase investment by 1.9% over the next 12 months, down from 2.1% before.

Prime Minister Keir Starmer will host an international investment summit on Oct. 14, aimed at boosting foreign direct investment to help improve economic growth - one of his main missions since coming to power in July.

"As the UK prepares to host a major investment summit, and speculation mounts ahead of a difficult budget, the chancellor must give companies the certainty and stability they need," Vallance said.

"Reforms to VAT and business rates, alongside public and private investment ... could help to achieve this."

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:9 Oct 2024, 04:32 AM IST
Business NewsNewsWorldTax worries knock UK business confidence, survey shows

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Indian Oil Corporation share price

    144.10
    03:58 PM | 29 OCT 2024
    -3 (-2.04%)

    Federal Bank share price

    200.70
    03:58 PM | 29 OCT 2024
    16 (8.66%)

    Tata Steel share price

    150.05
    03:59 PM | 29 OCT 2024
    0.6 (0.4%)

    Tata Motors share price

    843.05
    03:59 PM | 29 OCT 2024
    -35.65 (-4.06%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Gillette India share price

    9,412.30
    03:40 PM | 29 OCT 2024
    859.4 (10.05%)

    Deepak Fertilisers & Petrochemicals Corporation share price

    1,233.65
    03:56 PM | 29 OCT 2024
    103.05 (9.11%)

    Multi Commodity Exchange Of India share price

    6,834.25
    03:45 PM | 29 OCT 2024
    272.25 (4.15%)

    City Union Bank share price

    176.55
    03:29 PM | 29 OCT 2024
    4.8 (2.79%)
    More from 52 Week High

    Firstsource Solutions share price

    343.25
    03:50 PM | 29 OCT 2024
    -29.5 (-7.91%)

    Sapphire Foods India share price

    324.15
    03:29 PM | 29 OCT 2024
    -21.55 (-6.23%)

    Ksb share price

    791.65
    03:53 PM | 29 OCT 2024
    -40.25 (-4.84%)

    Quess Corp share price

    663.05
    03:44 PM | 29 OCT 2024
    -32.65 (-4.69%)
    More from Top Losers

    JSW Infrastructure share price

    316.15
    03:53 PM | 29 OCT 2024
    28.65 (9.97%)

    Deepak Fertilisers & Petrochemicals Corporation share price

    1,233.65
    03:56 PM | 29 OCT 2024
    103.05 (9.11%)

    Federal Bank share price

    200.70
    03:58 PM | 29 OCT 2024
    16 (8.66%)

    Home First Finance Company India share price

    1,193.80
    03:29 PM | 29 OCT 2024
    90.9 (8.24%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      79,805.00-490.00
      Chennai
      79,811.00-490.00
      Delhi
      79,963.00-490.00
      Kolkata
      79,815.00-490.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.75/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts