UK companies are planning to raise prices to pay for higher taxes as business confidence slumps to lowest level since market turmoil The ‘mini-budget’ crisis Autumn 2022, according to a survey by the British Chamber of Commerce.

The trade group said its market sentiment had declined “significantly” largest opinion poll Since the Labor Government took office First budget last Octoberwhich includes an increase in the amount of National Insurance (NI) paid by many employers, which is a tax on income.

The BCC said 63% of businesses surveyed cited taxes as a concern, up from 48% in the third quarter. More than half (55%) said they expected prices to rise over the next three months, mainly due to rising labor costs.

The proportion of companies saying they expect turnover to increase over the next 12 months fell from 56% to 49%. Worry inflation and interest rate Remain roughly stable.

The BCC cited companies in the hospitality, manufacturing, construction and healthcare sectors as expressing concerns about how to cover the additional costs and saying they may scale back investments.

“We recognize what (Reeves) said she has to increase taxes to fill her black hole, but what we need to see her do now is mitigate that. What are we going to do to get the economy moving?” BCC director Shevaun Haviland told CNBC’s “Squawk Box Europe” on Monday.

“Businesses are going to have to shoulder the burden of tax increases but we want to see her act and they need to act quickly. It’s important that they have the appropriate strategy in place, an industrial strategy, a trade strategy, an infrastructure plan, later this year Some time, but we need to act now.”

UK borrowing costs climbed following the October 2024 budget, surpassing levels seen after then-prime minister Liz Truss released her September 2022 “mini-budget” Announcing comprehensive, no-cost tax cuts.

However, economists say The recent rise in bond yields does not equate The spike in 2022 comes as moves are decidedly less dramatic and the macro backdrop changes, including cooling inflation.