Overview

• A British Chambers of Commerce survey found 13% of member firms have cut staff and 19% are considering redundancies since April’s employer National Insurance rise.
• Business confidence has fallen to its lowest level since 2022 and the Bank of England reports employment plans have turned mildly negative under higher labour costs.
• BCC Director General Shevaun Haviland told the annual conference the unexpected tax rise forced firms to rethink growth strategies and cautioned against further increases.
• Weil’s European Distress Index places UK companies among Europe’s most at-risk for corporate distress, with retail sector insolvencies approaching decade-high levels.
• Capital Economics estimates the Chancellor may need to raise up to £23 billion in the autumn to meet fiscal targets, raising the prospect of new levies on businesses.