A senior insolvency expert has warned that businesses in Rochdale and across the UK are facing a pivotal week, with fears that the upcoming budget could unleash damaging tax hikes across multiple sectors.
Steven Mason, senior manager at Greater Manchester-based corporate recovery firm Inquesta, said that companies should prepare for “a smorgasbord of tax increases” which could hurt economic confidence and place further strain on already fragile sectors.
Mason described the upcoming budget, due to be delivered by Chancellor Rachel Reeves, as a critical turning point for businesses still recovering from previous economic shocks.
“Historically, industry has looked to the budget to stimulate and encourage innovation,” he said. “But this year it’s being seen more as a damage limitation exercise than a roadmap for growth.”
He warned that business leaders were already in a state of “temporary paralysis” due to speculation around potential fiscal changes, including a mansion tax, increased betting duties, and possible new charges for electric vehicle drivers.
“This kind of uncertainty is choking off investment and strategic planning,” said Mason. “Unlike last year’s national insurance rise which businesses could clearly react to, this time the fear is death by a thousand cuts.”
Among the key concerns are:
A potential mansion tax, which could hurt property developers and estate agents, particularly in the south east
Higher gambling duties, which bookmakers claim could force closures on high streets
Pay-per-mile tax proposals for electric vehicle users, with fears it could damage green industries and sales
Major reforms to business rates, which could have unintended consequences for small and medium-sized enterprises
In its pre-budget analysis, PwC also flagged the risk of widespread business rate restructuring, calling on the Treasury to tread carefully to avoid harming business confidence.
Mason said he believed the government was prioritising short-term revenue over long-term growth, adding that Reeves’ budget appears more likely to “plug economic holes” than spark recovery.
“With consumers also expected to have less disposable income in the year ahead, sectors like retail and hospitality may be in for another tough 12 months,” he said.
Business groups across Rochdale and Greater Manchester will be watching the Chancellor’s statement closely, with many hoping for clarity and restraint amid growing fears of a downturn.
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