'Most firms forced to change plans' over Labour's tax raid

THE majority of businesses will have to change their plans as they face a “powder keg” of costs from the Government's upcoming tax raid.

- Chris Dorrell

Firms told a survey by the British Chambers of Commerce it would mean higher prices and thousands of lost jobs.

More than four in five bosses (82%) said Labour's employers' National Insurance hike would affect their businesses.

With less than six weeks until the tax increase comes in, 58% warned it would hit recruitment plans and 54% said it would spark price rises for consumers.

More than a third of the 1,200 companies taking part in the survey also said they would be cutting back on investment.