Rachel Reeves’ Budget is squeezing profits and killing off growth, business chiefs will warn today

RACHEL Reeves’ Budget is squeezing profits and killing off growth, business chiefs will warn today.

At the annual Confederation of Business Industry conference, the Chancellor will be told she “must never again” unleash a tidal wave of taxes on hardworking traders.

In Westminster CBI CEO Rain Newton-Smith will caution Ms Reeves that “when you hit profits, you hit competitiveness, you hit investment, you hit growth”.

Just one day before ministers unveil a major drive to get Brits on benefits back to work, Ms Newton-Smith will also declare that after the Budget businesses feel they can’t afford to “take a chance on new people”.

It comes as fury over Labour’s national insurance hike on employers continues wreaking havoc on Sir Keir Starmer’s government.

A CBI survey revealed that nearly two-thirds of firms think the Budget will damage UK investment, with half looking to reduce staff numbers as a result.

In a major speech Ms Newton-Smith will say: “Tax rises like this must never again be simply done to business.

“That’s the road to unintended consequences.

“From now on we need an elevated partnership for a higher purpose.

“Too many businesses are having to compromise on their plans for growth.

“We can’t let that stand and not act.”

Reuters

Rachel Reeves’ Budget is squeezing profits and killing off growth, business chiefs will warn today[/caption]