Latest news with #BritishChambersOfCommerce
Daily Mail
2 days ago
- Business
- Daily Mail
We can't take another tax raid, firms tell Rachel Reeves
Businesses yesterday warned the Chancellor that they cannot shoulder further tax hikes in the Budget after a sharp slowdown in economic growth. Leading City groups said Rachel Reeves must rule out another tax raid after GDP growth of 0.3 per cent between April and June – a dramatic drop on the 0.7 per cent recorded in the previous three-month period. The reading was stronger than the 0.1 per cent growth that economists had forecast, but the British Chambers of Commerce (BCC) cautioned: 'The numbers mask the underlying pain being felt by businesses.' Growth was boosted by Government spending but household expenditure slowed to 0.1 per cent and business investment fell 4 per cent following the Chancellor's National Insurance hike. Reeves is expected to raise taxes in the autumn Budget to fill a £50billion hole in public finances. 'There must be no more business taxes in the Budget,' BCC research manager Stuart Morrison said. CBI lead economist Ben Jones said that 'the UK is walking a narrow path between resilience and stagnation', adding: 'Policy uncertainty in the run-up to the Budget risks tipping the balance. 'With the business tax burden at a 25-year high, the Government must chart a steadier course by ruling out further tax rises and prioritising policies that can quickly lift investment and productivity.' And the Institute of Directors (IoD) said it was 'striking that momentum is coming from the public sector, with consumer spending slowing and business investment contracting'. IoD chief economist Anna Leach said: 'Private sector growth is being held back by both global and domestic policy uncertainty, with speculation over forthcoming tax increases adding to the headwinds. 'We urge the Government to adopt a strategic approach to policy, prioritising removing blockers to growth, particularly in the planning system, and enhancing the efficiency of the tax system.' The pound spiked after the GDP figure, rising to just below $1.36, a one-month high, before giving up ground later. Against the euro, the pound rose above €1.16, also the highest in a month. That was after the firmer-than-expected GDP figures from the Office for National Statistics added to fears that there will be no further Bank of England interest rate cuts this year – amid concerns about rising inflation. Analysts at HSBC said: 'The GDP data suggests the UK economy, while not booming, is still trundling along and creating jobs. This strategy has so far proved unsuccessful. The risk is the Bank chooses to pause or slow the pace of rate cuts.'
The Independent
2 days ago
- Business
- The Independent
Fresh trade deal calls as Trump tariffs hit UK exports
British exports to the US have plummeted by 13.5 per cent, or £2bn, in the last three months compared to the same period in 2024. This significant decline is attributed to tariffs imposed by US President Donald Trump, which include a 10 per cent levy on most UK goods and a 25 per cent levy on steel and aluminium. The fall occurred despite a US-UK trade agreement signed in June, which failed to include carve-outs for the steel industry. The British Chambers of Commerce said that the effects of the tariffs are clearly being felt by companies exporting to the US. Ministers are now facing calls to secure the outstanding part of the trade deal, particularly concerning the high tariffs on steel and aluminium exports.
Yahoo
02-07-2025
- Business
- Yahoo
Business confidence remains weak after NI and wage cost hikes, says BCC
Business confidence remains fragile after firms swallowed the jump in tax and labour costs in April, according to new research. A survey by the British Chambers of Commerce (BCC) found that most firms continue to see tax pressures as their main concern going forward. The influential business group urged the Government to rule out further tax hikes for firms later this year as a result. The quarterly economic survey showed that 56% of firms said they were particularly concerned about their tax burden, with this followed by worries over rising inflation. Nevertheless, the proportion of businesses expecting to put up prices over the next three months eased to 44%, after spiking at 55% in the first quarter of the year. The BCC said the research found that 'confidence among businesses remains weak', with less than half, 49%, of firms expecting to increase their turnover in the next 12 months. This was marginally improved from the previous quarter but still the second lowest figure since the aftermath of the mini budget in late 2022. A fifth (20%) of businesses expect turnover to worsen and 31% expect no change, the survey found. Shevaun Haviland, director general of the British Chambers of Commerce, said: 'The rising cost of doing business means confidence levels remain at their lowest levels since 2022. 'However, it's encouraging to see a drop in the number of firms planning to raise prices. 'Last week, the Prime Minister acknowledged at the BCC's global annual conference that business has been asked to shoulder a huge tax burden. 'We now need the Government to rule out any further business taxes in this year's budget.' Meanwhile, around a quarter of firms said they are also reducing their investment plans due to recent cost increases. David Bharier, head of research at the BCC, said: 'April's rise in national insurance contributions has cemented tax as the dominant concern for firms. 'Businesses are entering a new employment landscape marked by structurally higher labour costs and administrative requirements, fuelling increased anxiety about redundancies.'
The Independent
02-07-2025
- Business
- The Independent
Business confidence remains weak after NI and wage cost hikes, says BCC
Business confidence remains fragile after firms swallowed the jump in tax and labour costs in April, according to new research. A survey by the British Chambers of Commerce (BCC) found that most firms continue to see tax pressures as their main concern going forward. The influential business group urged the Government to rule out further tax hikes for firms later this year as a result. The quarterly economic survey showed that 56% of firms said they were particularly concerned about their tax burden, with this followed by worries over rising inflation. Nevertheless, the proportion of businesses expecting to put up prices over the next three months eased to 44%, after spiking at 55% in the first quarter of the year. The BCC said the research found that 'confidence among businesses remains weak', with less than half, 49%, of firms expecting to increase their turnover in the next 12 months. This was marginally improved from the previous quarter but still the second lowest figure since the aftermath of the mini budget in late 2022. A fifth (20%) of businesses expect turnover to worsen and 31% expect no change, the survey found. Shevaun Haviland, director general of the British Chambers of Commerce, said: 'The rising cost of doing business means confidence levels remain at their lowest levels since 2022. 'However, it's encouraging to see a drop in the number of firms planning to raise prices. 'Last week, the Prime Minister acknowledged at the BCC's global annual conference that business has been asked to shoulder a huge tax burden. 'We now need the Government to rule out any further business taxes in this year's budget.' Meanwhile, around a quarter of firms said they are also reducing their investment plans due to recent cost increases. David Bharier, head of research at the BCC, said: 'April's rise in national insurance contributions has cemented tax as the dominant concern for firms. 'Businesses are entering a new employment landscape marked by structurally higher labour costs and administrative requirements, fuelling increased anxiety about redundancies.'
Irish Times
02-07-2025
- Business
- Irish Times
EU blocks Britain's attempts to join pan-European trading bloc
British government hopes of joining a pan-European trade area to reduce post-Brexit supply chain challenges for UK goods exporters are being blocked by Brussels, according to officials on both sides. The UK announced it was considering whether to join the Pan-Euro-Mediterranean (PEM) convention as part of its new trade strategy published last week, arguing it could help boost the UK's flagging goods exports. However, the European Commission has made clear to the UK that it would not currently support such a move, according to four people familiar with discussions, in a move the officials acknowledged had 'frustrated' London. The blockage is the first sign of friction between the UK and European Union (EU) since the two sides announced a 'reset' of their relationship at a summit on May 18th, promising to improve energy trading arrangements and sign a so-called veterinary agreement to remove checks on agri-food exports. READ MORE The PEM convention is an agreement between the EU and 20 other countries in Africa and the Middle East that allows inputs for manufacturing supply chains to be sourced across multiple countries in order to qualify for low-tariff access to markets under free trade agreements. Joining PEM is a move supported by UK trade groups, including the British Chambers of Commerce. According to the UK's trade strategy published last week it could reduce 'complex paperwork' and 'increase flexibility for UK exporters where they source their inputs'. [ Brexit was 'single stupidest thing a country's ever done' Opens in new window ] EU officials familiar with the discussion said the commission had decided that the UK joining PEM was not currently in the EU's interests, because it would increase the risk of products unfairly qualifying for low-tariff access to the bloc. UK prime minister Keir Starmer has ruled out rejoining the EU single market or re-entering into a customs union with the EU, but industry has pushed the government to consider joining the PEM convention as an interim step to help goods exporters. Trade experts said the UK would need EU co-operation to join the convention because it would require rewriting the terms of the existing post-Brexit EU-UK trade deal – even though the PEM is not exclusively an EU arrangement. IATA Director General Willie Walsh on airline profits, air fares and why the Dublin Airport passenger cap makes Ireland a laughing stock Listen | 35:56 'For it to be meaningful for the UK, the EU would need to agree to incorporate the PEM rules of origin into the EU-UK Trade and Cooperation Agreement. This gives the EU de facto blocking powers,' said Sam Lowe, trade lead at consultancy Flint Global. Brussels indicated previously that it was open to the UK joining PEM, but has since gone cold on the idea, arguing that it wants to stick closely to the agreements proposed in the 'common understanding' set out between the two sides at the May 18th summit. In 2023, PEM was mooted as a solution to a stand-off over post-Brexit tariffs on electric vehicles, while as recently as January this year EU trade commissioner Maroš Šefčovič said it was something the EU 'could consider'. [ Supply risk identified for some UK animal medicines shipped to North Opens in new window ] David Henig, a former UK trade negotiator now at the ECIPE think-tank, said the EU commission's reluctance demonstrated the ongoing political challenge of repairing relations with the bloc. 'The EU isn't united on the importance of the UK reset and issues like PEM can easily be caught up in this even though technically straightforward,' he said. 'The UK government is going to have to work hard in London and Brussels to build momentum.' Separately, in another point of tension, the EU is still demanding full implementation of the Windsor framework deal on Northern Ireland ahead of any veterinary agreement that would remove the need for most checks on goods crossing the Irish Sea. The final phase of the Windsor framework deal came into force on July 1st. M & S boss Stuart Machin last week described the implementation as 'bureaucratic madness', saying it requires 1,000 products to have 'not for EU' labels, and 400 more will have to undergo full customs checks. [ The UK's trade performance remains dire Opens in new window ] Machin added the promised EU-UK veterinary agreement 'can't come soon enough,' but EU officials said the commission was being 'very firm' on the point that the deal must be fully implemented ahead of any EU-UK veterinary agreement. Industry insiders said that European relations minister Nick Thomas-Symonds had called supermarkets to a meeting in Whitehall last Thursday to urge them to comply with the deal or risk jeopardising talks over the veterinary agreement. The EU has repeatedly raised concerns that many big UK supermarkets are not fully complying with the rules. The commission did not immediately respond to a request for comment. The UK government said it was committed to full implementation of the Windsor framework and would review the merits of joining PEM through engagement with the trading group's members, including the EU. 'We aren't going to provide a running commentary on our ongoing discussions with the EU,' the Cabinet Office added. – Copyright The Financial Times Limited 2025 .
