Business confidence has plummeted to its lowest point since the fallout from Liz Truss’ mini-budget.
A new report from the British Chambers of Commerce reveals that fewer than half of UK firms expect to see turnover growth this year.
That marks the worst outlook since Autumn 2022, as economic pressures mount once again.
The SNP is demanding immediate action from the Labour government, starting with the reversal of what it calls a damaging “tax on jobs”.
The call follows a warning that 59 per cent of businesses now view tax, including the recent National Insurance rise, as a major concern.
British Chambers of Commerce Head of Research David Bharier said business sentiment continues to slump with “no improvement” since the Autumn Budget.
He warned that in some areas conditions are actually worsening as multiple cost pressures hit at once.
Over half of UK businesses expect to hike prices in the next three months.
That spells more pain for households already grappling with the cost of living and stagnant wages.
The SNP has described Labour’s hike in employer National Insurance as “ill thought through” and economically reckless.
With global uncertainty fuelled by an intensifying trade war, Scotland’s First Minister is urging the UK Government to act swiftly.
SNP MSP Michelle Thomson said Labour’s policy is hammering not only businesses, but the public sector and charities too.
She warned that the knock-on effects will result in higher prices, lower wages and reduced job opportunities for ordinary people.
Ms Thomson said the economic landscape has changed drastically since Labour Chancellor Rachel Reeves pushed through the hike last October.
She added that while countries across Europe have revised fiscal strategies to support businesses, Labour has done the opposite.
She said that now is the time for “clear and decisive action”, not economic rigidity.
The SNP insists Labour’s refusal to amend spending rules or scrap the tax on jobs is a betrayal of struggling workers and business owners.
It comes amid increasing pressure on Labour to clarify how it will stabilise the economy while supporting growth and protecting jobs.
The SNP is demanding an urgent rethink from Keir Starmer’s government to avoid further damage to an already fragile economy.
With no change in direction, concerns are growing that the UK could drift further into stagnation.
