The Chancellor has been warned that she has “shattered business confidence” with her tax hikes which has also created a “hostile environment” for investors.
Latest figures shows that Britain now has the worst investment levels in the G7 and in the three months to September, public and private investment was only up by 18.6%.
This has sparked concerns within Labour over the UK’s economy and six out of ten believe the UK is on the verge of entering into a recession, according to More in Common polling.
The Express reported that a Labour MP who wished not to be named, warned that the government seems to be ignoring SMEs “who keep the country going.”
The MP warned that Rachel Reeves hikes to employers national insurance and the national living wage will make it more difficult for businesses to expand by recruiting staff.
The Labour MP said, “We are now at a level where we can’t tax anybody any more, but we can’t borrow any more, so we are really at the mercy of those people we’ve borrowed from, so if they lose confidence in us, we have serious issues.”
Andrew Griffith, the Shadow Secretary of State for Business and Trade, said, “Rachel Reeves has shattered business and consumer confidence with her tax hikes and her economic incompetence. It’s little wonder investment in Britain is stagnant.
“Her tax hikes are sending costs for businesses soaring and making Britain less competitive. That means lower growth and higher unemployment.”
Reform UK deputy leader Richard Tice warned, “With punishing tax hikes and suffocating red tape, this Labour Government has presided over a hostile environment for investors.
“When faced with rising uncertainty and an administration that is ideologically opposed to any semblance of wealth creation, investors are naturally opting to take their money elsewhere. It’s no wonder that business confidence has plunged to record lows.”
