A survey by the ACCA has captured the worries of the UK business community, which is seen as adding to an already complex tax system and lacking in direction to promote economic growth.

The poll, drawing on feedback from finance professionals working with or in SMEs, reveals overwhelming concerns with a fiscal plan that is widely seen by the business community as prioritising welfare spending over economic growth. 

The survey findings reveal a clear picture of business sentiment: 

• damaging growth: 80% of businesses believe the Budget's measures will have a 'negative' or 'very negative' impact on the UK economy.
• stalled investment: expectations of future investment have plummeted, with almost two thirds (64%) stating they are now 'less likely to invest' in the next year.
• recruitment freezes: the labour market is set to suffer, as 66% of businesses indicate they are 'less likely to recruit' new staff following the rise in the national minimum wage and freeze on tax thresholds.  

Gemma Gathercole, Strategic Engagement Lead for England, ACCA said: 'This Budget should have been the opportunity to create a clear message for the country, one that prioritised stability and certainty in how to get the economy moving again. Instead, we have seen more tax complexity through the continued use of ‘tweaks’, rising wage costs and greater regulatory burdens – leaving many businesses considering redundancies, downsizing or moving operations overseas.'

 ACCA urges the Government to present a coherent, long-term economic strategy that prioritises private sector investment and provides the stability needed for sustainable growth, moving beyond ad-hoc policy shifts. 

Gemma Gathercole added: 'The combination of increased minimum wage rates, frozen tax thresholds, dividend tax hikes and new NIC charges is destroying incentives to work, train or invest. The Government needs to deliver long term plans with confidence, rather than relying on short termism thinking that results in economic stagnation and reduces trust in the business community.'

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