Businesses close shop ahead of Rachel Reeves’ budget

Carl Emmerson, deputy director of the IFS, said: “I don’t think there is a tax increase you can do that will not cause a loss to someone in paid employment.”

He added that forcing employers to increase national insurance contributions would make it more expensive to employ people and “this will eventually be felt in wages”.

“The theory and the evidence is that this will lead to lower wages,” he said. “That will slow growth in the short term. And in the long term people may be less inclined to work longer hours; that way you get a sustained negative impact on growth.”

Craig Beaumont, Executive Director of the Federation of Small Businesses, said: The rise of employers’ national insurance It will make “almost every job in the private sector more expensive” and is calling on Ms Reeves to announce an increase in employer pay to cushion the blow.

The number of businesses declaring voluntary liquidation (meaning directors choose to liquidate the company rather than being ordered by a court to do so in bankruptcy) rose to more than 1,600 this month, the highest level in the year, according to analysis by Bloomberg. Communiqués published in the Gazette.

London-based liquidator Edwin Kirker said he had seen an increase in the number of business owners looking to do business ahead of the budget.

“There have been a lot of people coming in over the last few months since everyone started assuming the Government would do this. increase inheritance tax and capital gains tax,” he said.

A HM Treasury spokesman said: “As the Chancellor made clear at the International Investment Summit in London: when we said we would end instability, make growth our national mission and engage in genuine partnership with business, this government meant it. “We do not comment on speculation regarding tax changes other than financial events.”