A new survey has uncovered that businesses in Britain are poised to pause investment because of uncertainty on whether the UK is headed for a recession, with a potential tax grab on the horizon. Individual consumers and companies alike seek out investment advice in Chester, Birmingham and other cities before obtaining assets. As experts in portfolio management, wealth managers advise investors based on their experience and up-to-date knowledge of market trends.
Concerns of a spending slowdown in the UK, which has been caused in the most part by households’ finances currently being squeezed by the cost-of-living crisis, has now impacted optimism among services companies in the country, which generate approximately £2 of every £3 of gross domestic product (GDP).
The recent research uncovered by the UK’s most prominent business lobby group, the Confederation of British Industry (CBI), explained:
“Uncertainty about demand continued to weigh on business investment, resulting in expected cutbacks in spending on land and buildings, as well as vehicles, plants and machinery.”
The report also noted that interest rates have also recently climbed ten times consecutively to reach 4%, marking a 15-year high due to the Bank of England attempting to resolve runaway inflation. This has made it increasingly expensive for businesses to borrow and help fund investment.
The current decline in business’ investment intentions has been compounded further by UK Chancellor Jeremy Hunt forging ahead with a 6% corporation tax hike taking it to an overall rate of 25% this April, rising from the present 19%.
