Chancellor Rachel Reeves has dismissed business anger over her Budget tax raid, insisting that no one has offered any alternatives. Speaking at the CBI conference, she acknowledged anxiety about the impact of the measures but said she had not heard many alternatives to her approach.
Ms Reeves defended the £40 billion tax rises, including a £25 billion hike to employer National Insurance, arguing that the 'difficult decisions' provided stability. She suggested this would be the last major tax increase this Parliament, stating she would not come back for more borrowing or taxes.
However, business leaders have warned of severe consequences. CBI chief executive Rain Newton-Smith said industries like retail and hospitality have been pushed into 'crisis containment', with half of firms planning job cuts and two-thirds slashing recruitment. CBI chair Rupert Soames said business had been 'milked as a cash cow'.
Salman Amin, chief executive of McVitie's parent company Pladis, cautioned that it is becoming harder to justify investing in the UK. PMI figures also showed a contraction in private sector activity in November amid a drop in confidence.
Ms Reeves told the conference that public finances are now on a firm footing and public services are properly funded for the rest of the Parliament. She added that she was 'proud' to have dealt with the problems inherited from the previous government.
