London: A recent survey conducted by the Association of Chartered Certified Accountants (ACCA) has revealed widespread dissatisfaction among UK finance professionals regarding the latest budget unveiled by the Chancellor. The survey indicates that the budget’s focus on welfare spending is perceived as a hindrance to economic growth, creating a complex tax environment and fostering uncertainty.

The ACCA survey gathered insights from finance experts working with or within small and medium-sized enterprises (SMEs). The feedback underscores a prevailing sentiment that the fiscal strategy fails to provide a clear path for economic advancement. Notably, 80% of the businesses surveyed anticipate a ‘negative’ or ‘very negative’ impact on the UK economy as a result of the budget’s measures.

Investment outlook appears grim, with nearly two-thirds (64%) of respondents indicating they are less likely to invest in the coming year. Additionally, the labour market may face challenges, as 66% of businesses report they are less inclined to hire new staff due to rising minimum wage rates and a freeze on tax thresholds.

Gemma Gathercole, Strategic Engagement Lead for England at ACCA, expressed concerns over the budget’s implications. She noted that the budget should have been an opportunity to instill stability and certainty, yet instead it has introduced further tax complexities and regulatory burdens. Gathercole warned that these conditions could lead businesses to consider layoffs, downsizing, or relocating operations abroad.

The ACCA is calling for the government to articulate a coherent, long-term economic strategy that prioritizes private sector investment and sustainable growth, moving away from short-term policy adjustments. Gathercole emphasized the need for a confident, long-term economic plan to restore trust and stimulate economic activity.

According to Gathercole, the combination of increased minimum wage rates, frozen tax thresholds, dividend tax hikes, and new National Insurance Contributions (NIC) charges is undermining incentives to work, train, or invest. She urged the government to abandon short-term tactics that lead to economic stagnation and instead foster a more reliable business environment.