Labour warned that more tax rises will crush jobs market

Core Insights - The UK government is facing pressure to find £30 billion in tax rises and spending cuts in the upcoming Budget, with warnings that further tax increases on businesses could severely impact the jobs market and economic growth [2][3]. Group 1: Business Sentiment - 56% of employers indicated they would either cut jobs or freeze hiring if corporate taxes are raised again, highlighting a significant concern for the job market [2]. - Nearly half of the surveyed businesses have already reduced jobs or halted hiring due to previous tax increases, with the unemployment rate reaching a four-year high of 4.8% [3]. - Business confidence is described as fragile, with many firms citing high operating costs and uncertainty as major barriers to growth [5]. Group 2: Economic Impact - The ICAEW warns that further tax hikes could jeopardize the UK's growth mission, with corporate tax increases potentially leading to a "damaging cliff edge" for the economy [2]. - Almost half of the firms surveyed are considering raising prices in response to higher taxes, and two in five plan to cut investment [4]. - Inflation is currently at 3.8%, nearly double the Bank of England's target, which is exacerbated by a deteriorating labor market [5][6].