Business Confidence Continues to Weaken, with Tax Remaining a Major Concern
The British Chambers of Commerce (BCC) has released its Quarterly Economic Survey, which reveals that confidence among firms has continued to decline, with tax remaining the biggest concern for businesses. According to the survey, only 46% of responding firms expect an increase in turnover, the lowest level in three years. This decline in confidence is a worrying trend, as it can have a significant impact on investment, job creation, and economic growth.
Taxation Remains a Major Concern for Businesses
Taxation was cited as a concern by 63% of firms, with 68% of businesses expressing concern about tax before the Budget statement on November 26. Although the concern about taxation fell to 61% after the Budget, it remains a major issue for businesses. David Bharier, Head of Research at the BCC, noted that firms are worried about tax, struggling to invest, and fear they will have to increase prices in the months ahead. This is a concerning trend, as it can lead to higher prices for consumers and reduced competitiveness for businesses.
Outlook for SMEs in 2026 Remains Unsettled
The survey found that more businesses now expect to raise prices in 2026, which can have a negative impact on consumers and the overall economy. The BCC is calling on the government to take action to boost investment, expand trade, and ease the burdens facing businesses. As Bharier stated, “It is now critical that 2026 is a year of delivery. The government needs to turn last year’s strategies into action; boost investment, significantly expand trade, and ease the myriad burdens facing businesses.” This is essential to shift the economic outlook from its current low-growth trajectory and support the growth and development of SMEs.
The decline in business confidence and the concerns about taxation highlight the need for policymakers to take a proactive approach to supporting businesses and promoting economic growth. By addressing the concerns of businesses and providing a supportive environment, the government can help to boost confidence, investment, and job creation. For more information on the Quarterly Economic Survey and the concerns of businesses, visit Here
