BCC calls for no new taxes on businesses in current parliament
By Ikaba Koyi
Date: Sunday 27 Aug 2017
(ShareCast News) - The British Chambers of Commerce is calling on the government to ensure no new upfront costs or taxes for business in this parliament to ensure the UK remains an attractive and competitive environment going forward, after a survey released on Friday found that four out of every five businesses have seen their costs increase.
According to the British Chambers of Commerce's annual workforce survey, 75% of respondents had reported an increase in costs stemming from Pensions auto-enrolment with approximately 23% indicating a significant increase.
In parallel, 20% of businesses saw costs increase after introduction of the Apprenticeship Levy, while 38% said they would raise prices of products and services due to the National Living wage increase to £8.75 per hour by 2020, and 25% said they expected to reduce pay growth.
However, firms in the North of England and the Midlands were more likely to be impacted by the National Living wage than firms in the South, the survey .
On the back of the survey's findings, the BCC advised that: "for the UK to remain an attractive and competitive environment going forward, action is needed to prevent unsustainable rises to the cost of doing business. The BCC is calling on the government to ensure no new upfront costs or taxes - which sap investment, growth and recruitment potential - are imposed on business for the remainder of this parliament."
Jane Gratton, head of Business Environment and Skills at the British Chambers of Commerce pointed out the likelihood of firms responding badly.
"Firms are most likely to respond by raising prices or adjusting employee pay growth and wider benefits. Increasingly, manufacturers are looking towards greater use of technology and automation. There comes a point at which rising employment costs can no longer be absorbed through reduced profits", said Gratton.
For his part, David Williams, director of Corporate Engagement at Middlesex University London which also helped in the survey, commented on the governments's unrealistic expectations: "Businesses are facing the challenge of maintaining profitability while remaining price competitive. This is a tough balance to achieve during what is an uncertain period, and we are seeing many start to tighten their belts and pull back investment", said Williams.
"We need to up our productivity to enable us to compete globally in a post-Brexit Britain."
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