Global Uncertainty Necessitates Course Correction
The SNP has called for Labour to immediately reverse its tax on jobs, in the wake of global economic uncertainty and a respected survey showing that business confidence has fallen to its lowest level since Liz Truss’ disastrous mini-budget.
The latest Quarterly Economic Survey from the British Chambers of Commerce shows that less than half of businesses expect to increase their turnover this year, the lowest level since Autumn 2022 after Truss crashed the economy.
59% of businesses highlighted tax, including the rise in National Insurance rates, as a growing concern. David Bharier, Head of Research at the British Chambers of Commerce, said: “It is clear that business sentiment is in a slump following the Autumn Budget last year and this fresh dataset shows no improvement to that. In some indicators, we have seen a further worsening. This is to be expected as costs have piled on businesses simultaneously.”
More than half of businesses surveyed said that they expected to raise their prices in the next three months – hitting consumers already battling with the cost of living and facing the prospect of lower wages because of Labour’s tax hike.
With a global tariff war now causing economic uncertainty around the world, the First Minister has called on the UK Labour Government to immediately re-think its fiscal rules and take decisive action to support Scottish businesses, consumers and workers – starting by immediately scrapping their tax on jobs.
Labour’s tax on jobs comes into effect today.
— John Swinney (@JohnSwinney) April 6, 2025
It will cost livelihoods, businesses, and public services, and is such a damaging policy at the worst possible time.
The UK government must scrap it or risk plunging us into a recession. https://t.co/nsWk9fNjcf
The SNP has been consistently highlighting the damaging impacts of Labour’s jobs tax, which was ill-considered at the time and is now all the more of a threat in the new global economic reality.
GRAEME
This policy is hitting the public sector and charities as well as business, and this latest survey shows how the knock-on effect will hit everyone else too – with higher prices, lower wages and fewer job opportunities.
In light of the obvious changes in the business landscape since October, businesses need clear and decisive action with support and investment in the economy.
Starmer’s Labour UK Government have taken the opposite approach to other European governments which have made immediate interventions in response to these challenges – they must reverse their reckless National Insurance hike without delay.
