Tax rises will make it harder to hire, says CBI

Tax rises in the Budget have made it more difficult for firms to "take a chance" on hiring people, according to one of Britain's most prominent business groups.

In a speech at its annual conference on Monday, the boss of the Confederation of British Industry (CBI) said the changes were undermining investment.

Rain Newton-Smith suggested businesses across many sectors were "being hit by a tough trading environment that just got tougher" due to changes in National Insurance contributions (NICs) and inheritance tax.

The government said "difficult choices" had been made in a bid to "repair the public finances", but that it was determined to work with firms.

In her first Budget as chancellor last month, Rachel Reeves announced a near-£70bn increase in public spending, partly funded by increases in taxes on businesses.

While rises in the minimum wage and workers' rights reforms have been praised by unions and workers' groups, bosses have hit out, saying that their businesses are being weighed down by multiple changes at once.

In her speech to the CBI's conference, Ms Newton-Smith argued that "tax rises like this must never again simply be done to business".

She also pointed to a recent survey by the group, which found almost two-thirds of 185 companies who responded think the Budget will damage UK investment.