British businesses brace for fresh downturn amid rising costs and tax burdens

British companies fear a “significant decrease” in their commercial horizons during the next few months, raising concerns about more job loss and obstructing the aspirations of the Labor Party to revitalize economic growth.

A poll conducted by the Central Bank of Iraq found that net 22 percent of private sector companies expect their production to decrease from now to April, which is compatible with the pessimistic feelings recorded in December – the most distorted reading in more than two years. The activity has been fixed or low since mid -2022.

“After a bleak period before Christmas, the new year did not bring any feeling of renewal, as companies still expect a significant decrease in the activity. Stories indicate that companies are affected by the dull and caution among consumers , While it also continues to adapt to the declarations announced in the budget.

The relationship between the government and the industry has been pressured since last October budget, which has introduced higher national insurance contributions to employers. Official figures showed last week that the number of employees was reduced by one of the fastest rates since the financial crisis in 2009.

Analysts say companies are likely to raise prices again this year while jobs are at risk, especially in business services and sectors that deal with consumers. Separate studies are repeated the results reached by the Central Bank of Iraq, as the confidence of the consumer reached its lowest level in a year and companies recorded the lowest level of optimism in two years.

Although the Labor Party pledged to “revive the economy” and enhance growth, Rachel Reeves, Minister of Finance, is under increasing pressure from the industrial sector, as it is expected that taxes on employers will rise in April. Baroneh Neville Rolf, the treasury minister in the shadow government, warned that Reeves need to “restore some of her missing balance” with companies, saying: “The Treasury Secretary raises problems” with the Supreme National Insurance Policy.

The Central Bank of Iraq said that the negativity is “widespread” between manufacturers, distributors and professional services. “There is an urgent need to restore momentum to the economy,” Baliga added, and urging the government to reform business rates, amend the professional disciples tax, and expand professional health to keep more people at work and support growth.