Businesses Brace for Impact: UK Budget Raises Taxes, Spurs Inflation

British businesses are feeling the pinch after the UK's Finance Minister, Rachel Reeves, announced a tax-hiking budget. The biggest change is an increase in National Insurance (NI) payroll tax for employers. This will rise from 13. 8% to 15% from April 2025 and will start at a lower income threshold. The government aims to collect an extra £25 billion ($32. 3 billion) annually. Business leaders and analysts warn that this could slow down hiring and push up prices. They argue that employers might not be able to raise wages or hire more people. The minimum wage is also going up, which will add to business costs. Some small businesses might benefit from an increased employment allowance, but many are still worried. The Office for Budget Responsibility thinks this budget could boost growth but also raise inflation.