THE PM is under fire for insisting higher taxes will lead to growth — despite business confidence plunging to a record low.
Sir Keir Starmer defended the rise in employers’ National Insurance while the country is braced for more tax increases at the Budget to plug the £30billion financial black hole.
2
He said his renewal plan would take time, adding: “Tough decisions will keep on coming.”
Sir Keir said: “We asked a lot at the last Budget, I know that.
“I do think in the long-run fixing our public services, investing in new infrastructure and helping our public services off their knees, that will be better for growth.”
Tory leader Kemi Badenoch said: “The Prime Minister could have used his speech to own up to the mistakes he’s made, and set out a plan to avoid further punishing tax hikes this autumn, but he did not.”
Bosses’ optimism on prospects for the economy fell to -74 last month from -61 in August.
It marked the lowest reading since the Institute of Directors’ survey began in 2016.
Industry chiefs expect costs to rise and employee numbers to be hit with investment intentions also falling.
The top three factors driving business outlook for the year ahead remain unchanged with the most significant being labour costs, rising prices in the supply chain and also energy costs.
The Chancellor has this week said that the country was facing “harsh global headwinds” but she would not take risks with the economy signalling taxes would be hiked.
