'Taxes will only make it harder to get people off benefits'

BUSINESSES being clobbered with tax hikes by the Government will thwart its plans to get people off benefits and back to work, hospitality and retail bosses have warned.

- By Tony Whitfield

The increase in employer National Insurance contributions and the minimum wage has seen owners of shops, bars, restaurants and other outlets on high streets put on hold their plans for investment and recruitment.

Many are now contemplating shedding jobs at a time when the Government wants to slash the benefits budget in Wednesday’s Spring Statement.

And they fear any more cuts will further damage the already fragile consumer confidence.

Chancellor Rachel Reeves was under pressure to increase taxes or cut spending to meet the financial rules she set in her autumn Budget, amid disappointing growth figures and higher than expected borrowing.

She signalled in an interview yesterday that she would not raise taxes, saying: "We can't tax and spend our way to higher living standards and better public services.

"That's not available in the world we live in today." on But business owners fear any measures that heap further costs businesses will strangle growth and job creation even further.