CBI boss says Labour has ‘bruised’ trust of businesses after Budget
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The Chancellor has “bruised” business confidence by expecting companies to help fill the hole in public finances, the chairman of the Confederation of British Industry (CBI) has said. Rupert Soames said business leaders are less likely to employ people in the current climate.
He was referring to Chancellor Rachel Reeves’ decision to raise national insurance contributions (NIC) for employers, among other business cost increases in the October Budget. The NIC increase is designed to help fund improvements to public services like the NHS, but it has come under criticism from companies for making it more expensive to employ people.
Mr Soames told BBC Radio 4’s Today programme: “The Chancellor told us at the time of the Budget that there was an unexpected hole of about £22 billion in the Government finances, and business was going to have to fill it. “In filling in one hole, it’s created another, and that hole is a hole in the confidence and trust that business has in the Government.
“I think sometimes it’s not understood, the extent of the impact, particularly on companies that employ lots of people. “We think the national insurance increases are going to feed through into inflation, we’re going to have a lower growth rate, but also, because of things like the Employment Rights Bill coming along, you’re going to find people laying people off and less likely to employ.”.
