More than half of UK companies (51%) are concerned about yet another ‘jobs’ hammer blow when the Chancellor announces his budget next week.
In a new report out on Friday by accountancy and professional services group DJH, management teams are fearing employment costs will rise as part of John Healey’s new measures to get the economy growing.
Seven in ten describe their business mood as cautious (48%) or anxious (23%) and this is having a direct impact on their ability to make positive decisions around new capital investment and on recruitment.
“After the last eighteen months, it is little surprise that all eyes will be on the new Chancellor next week, as he sets the conditions for what economic performance can look like going forward,” commented Scott Heath, CEO of DJH.
“Owners have every right to be cautious, with global conflicts, rising energy costs at home and talk of even more tax increases creating an ‘uncertain’ landscape. It’s safe to say from the figures that businesses do not need further uncertainty.”
He continued: “Our Autumn Budget Business Confidence Report was designed to take the pulse of companies across the UK, highlighting their hopes and fears and how decisions made by the government now will influence activity in the short-term.
“The message is clear…management teams are fearing more pain is coming their way and their caution is holding back key actions that could accelerate growth.”
Nearly half of the companies surveyed (45%) have paused at least one decision in the lead-up to the Budget, with the most popular one being investment. Over 20% have paused their recruitment plans until they can review what is coming down the line.
The news doesn’t get any better for the Chancellor. 52% of companies in the DJH Report have low confidence in Mr Healey to boost the economy, meaning there is an immediate challenge to turnaround business sentiment.
“When a third of businesses put investment or hiring on hold, the effect is felt well beyond their own balance sheets. For many, the most valuable thing the Budget can offer is not a particular measure but clarity, and the stability that a good number asked for in their own words,” added Scott.
“If the leaks are to be believed, bosses will be very relieved to see there will be no increases to capital gains tax. This was a major concern for 31% of respondents and these very same respondents will be buoyed by comments from the Chancellor about ‘wanting to prioritise wealth creation without it being constantly subject to penalties.”
DJH is a fast-growing accountants and professional services group, employing nearly 1000 people at 26 offices across the country.
Its Budget Business Confidence Report was carried out between September 10th and October 20th and featured the responses of 82 companies.
For further information or to download the report, please visit https://www.djh.co.uk/pre-budget-survey.
