Rachel Reeves actively courted the business community well in advance of the election. However, since the election business owners have been on a rollercoaster of uncertainty in the run-up to the Budget with an array of tax rises suggested by or leaked to the press. They are today feeling the pain given the significant changes confirmed to CGT, IHT and employers' NIC contributions.
These tax changes will leave many business owners questioning whether they should invest their time, energy, risk and money in starting and growing businesses. Many will face difficult dilemmas about whether it is worth taking on more staff, or indeed retaining the ones they currently have given that costs of employment will rise.
If the business owners lose confidence in the Government's economic or fiscal plans, they might decide that striving for that extra growth is not worth it if the rewards are more heavily taxed.
The introduction of restrictions to IHT business reliefs will make it more difficult for entrepreneurs to pass their businesses onto the next generation, effectively stifling growth.
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