Tax Raids and Rising Costs Are Pressuring UK Businesses
What happened
Rachel Reeves implemented tax raids totaling over £40bn in the 2024 Budget and £26bn in the 2025 edition. The economy is currently struggling, with employers shedding staff at the fastest rate in nine months. Youth unemployment reached 16.4 per cent in August.
From cityam.com
Why it matters
The economic outlook is described as not rosy, driven by higher employer National Insurance, above-inflation minimum wage increases, and an Employment Rights Bill that makes hiring riskier and more expensive. Businesses are openly pushing back against these policies.
The CIPD is urging Andy Burnham to address business cost concerns due to the negative impact of Rachel Reeves' tax raids on hiring.
From cityam.com
Who's involved
- Rachel ReevesBritish politician and Chancellor of the Exchequer responsible for the tax raids
- Andy BurnhamBritish politician urged to address business cost concerns
- family businessCompany significantly influenced by family, subject to tax and business regulations
- John HealeyBritish politician who succeeded Rachel Reeves as Chancellor
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- family businessSpeculative
Family businesses could face threats to viability due to 'death tax' caps on inheritance tax relief, combined with high National Insurance and minimum wage increases.
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The entities involved
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Rachel Reeves
British politician and current Chancellor of the Exchequer (born 1979)
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family business
company that is significantly influenced by a family
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