Read our privacy policyPrice hikes and job cuts are inevitable following Labour’s Budget, business leaders have warned Rachel Reeves as they accused her of failing to grow the economy. Ms Reeves’ national insurance rise comes alongside a 6.7 per cent hike in the minimum wage, leaving many firms facing a double whammy. After Sir Keir Starmer and Ms Reeves’ much-hyped charm offensive with business chiefs, one adviser to a FTSE100 firm told The Times: “Business is feeling very sore. “All hospitality businesses, we believe, plan to increase prices, as a result.” Sir Tim said his own running costs are rising by £60m in the next year. The Treasury said Labour inherited crumbling public services and Ms Reeves’ tax hikes protect workers’ payslips while pumping money into the NHS and other public services.
