09 Jun 2026
The UK economy has the 'makings of a true growth story' but that a record high business tax burden is it at risk, warns the Confederation of British Industry (CBI).
Rain Newton Smith, Chief Executive of the CBI, cited the organisation's data on the overall business tax contribution. She says that rising costs on firms have an impact across the wider economy.
In addition, Newton-Smith says that a background of rising global and domestic volatility makes it essential for the government to get into action as businesses cannot afford a summer of stagnation.
Newton-Smith said: 'Over the last 12 months, the profitability of UK business has been the lowest since the 2008 crash. Some of that is global - energy costs driven by forces outside the government's control.
'But some of that is home-grown. Last year, the government tax take from business was the highest on record. National Insurance alone rose nearly 28% on the year before - almost £27 billion extra, taken from business.
'That is not free money. It is not free of consequence. It's equivalent to the cost of creating almost 1.3 million jobs for young people on the 18-20 National Living Wage. You cannot fix the cost of living without fixing the cost of doing business. And the cost of doing business is reaching a tipping point.'