Don't hammer business with more taxes!

Warning to Reeves as inflation piles cost pressure on employers

- By David Williamson Chief Political Commentator

CHANCELLOR Rachel Reeves has been urged not to kill off growth by hammering businesses with more taxes as inflation ramps up costs.

Inflation stayed at 3.8% in August — nearly twice the Bank of England target rate of 2%.

Stuart Morrison, of the British Chambers of Commerce, said the Chancellor’s increase in national insurance costs, pay increases and higher tariffs are eating away at companies’ operating margins.

Message

He said: “Businesses will be worried by inflation holding at 3.8% at a time when cost pressures continue to bite, especially on wages.” He warned that inflation is likely to remain around this level until the end of the year.

Mr Morrison added: “Our message to the Chancellor is clear - there must be no new tax rises on business. Firms cannot provide the economic growth we all need if they continue to be hampered by rising costs.”