Overview
- In a speech at the CBI annual dinner this week chief executive Rain Newton-Smith said UK firms paid about £345 billion in business taxes last year and warned that pressure on companies has reached a 'tipping point'.
- The CBI highlighted that employer National Insurance generated roughly £123.1 billion, overtaking corporation tax, and that its recent rise cost firms about £27 billion in the last year.
- The lobby rejected claims that firms are generally profiteering from recent energy shocks and argued that public accusations of price‑gouging are damaging confidence and business reputations.
- Newton-Smith linked internal Labour Party turmoil and Westminster politics to falling business confidence and warned this could depress investment and trigger what she called a 'summer of stagnation'.
- The group said the squeeze comes as energy-price shocks related to the Iran war compound higher labour and regulatory costs and noted that business taxes now make up about 31% of UK tax receipts, a record share since 1998, which could slow growth and hiring.