Budget Tax Hikes Will Cut Jobs and Investment, UK Businesses Say

British businesses have warned they will hire fewer people and cut back on investments after the Labour government raised taxes by £40 billion ($52 billion).

Chancellor of the Exchequer Rachel Reeves ruled out direct tax hikes on workers ahead of Wednesday’s budget, leaving companies and shareholders on the hook for most of the extra revenue.

She lifted employers’ national insurance contributions, a major payroll tax, by 1.2 percentage points and lowered the threshold so that businesses start to pay it when a worker earns £5,000.

“This is an absolute disaster,” said Adam Cunard, whose Picturedrome group of cinemas employs 110 ...