Confidence among UK firms has “slumped” as they face a “pressure cooker of rising costs and taxes”, according to a business group. The British Chambers of Commerce (BCC) said its survey of more than 4,800 firms suggested confidence had fallen to its lowest level for two years. Nearly two-thirds told the BCC they were worried about taxes following the Budget, which announced a rise in national insurance contributions (NICs) paid by firms from April, and more than half expect to raise prices in the next three months. A Treasury spokesperson said more than half of employers would either see a cut or no change in their NI bills. The strength of the UK economy has come under focus following the release of disappointing growth figures just before Christmas. The latest official data showed the economy had zero growth between July and September, while it contracted during October. The figures were seen as a blow to the government after it made boosting the economy its top priority. Businesses have already warned that Budget measures such as the rise in employer NICs, together with the higher National Living Wage, could lead to job cuts and price rises.
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