Chancellor Rachel Reeves assured sceptical corporate leaders on Monday that there would be no further tax increases on British businesses. She defended the £40bn tax hike in last month’s Budget, stating that there was no other option. Speaking at the CBI annual conference in London, Reeves expressed no regrets about her fiscal choices, even as some executives expressed concerns about potential impacts on their investment plans.
Reeves acknowledged the feedback on the Budget but noted the lack of alternatives. She emphasized the need to stabilize public finances to restore economic stability. She also assured business leaders that there would be no future tax rises, stating, “We have now wiped the slate clean.”
Salman Amin, CEO of snack maker Pladis, and Keith Anderson, CEO of Scottish Power, voiced their concerns about the Budget’s implications for investment and growth. CBI Chair Rupert Soames urged the government to address other policy areas quickly to avoid eroding business confidence gained during the election.
Despite the criticisms, Rain Newton-Smith, CBI Director-General, credited Reeves for her efforts to stabilize public finances. However, she criticized the rise in corporate taxes, warning of potential negative consequences on competitiveness and growth.
Attendees at the conference expressed frustration over higher business taxes and sympathized with the government’s position. Some highlighted concerns over the unexpected costs and implications of the national insurance contributions increase.
Kemi Badenoch, the new Tory leader, criticized the Budget as an unprecedented burden on British businesses, cautioning that everyday people might bear the brunt of the tax hikes. While she stopped short of promising reversals, discussions with top business leaders and officials were described as civil and non-confrontational.
