Budget expected to have negative impact on businesses, says ICAEW
Budget expected to have negative impact on businesses, says ICAEW
An ICAEW poll has found that close to three-quarters of respondents agreed the Budget would negatively impact their organisation.
ICAEW’s Chief Policy and Communications Officer, Iain Wright, has labelled last week’s Budget as a missed opportunity to support growth, following feedback from ICAEW members and the wider finance community.
In the hours after Rachel Reeves announced her Budget on 27 November, ICAEW asked its members what they thought of the measures announced and their potential impact.
The survey generated more than 1,600 responses . Close to three-quarters of respondents (74%) agreed that the measures would have a negative impact on their business.
Wright said: “For a government whose number one ambition is economic growth – and a Chancellor who certainly had the opportunity to go for growth – that was not the Budget to deliver a much-needed confidence boost to UK plc.”
Impact on jobs and prices
More than one-third of respondents (37%) expected their organisation to reduce headcount as a result of the measures announced, with a further 37% suggesting that they would have to raise prices.
Investment was also expected to be hit with 30% saying that it was likely to be reduced.
Impacts were most keenly felt by those working in accountancy practices, with 22% saying that they expected the Budget to have a ‘very negative’ impact on their organisation and 48% expecting to increase their prices.
“Our members consistently tell us that doing business is too expensive, too difficult and too uncertain ,” said Wright. “Unless the government signals a clear change of course, it will struggle to deliver the conditions for growth the UK needs.”
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