The British Chambers of Commerce has warned the next prime minister that increasing taxes on business would be "a road to ruin", arguing that restoring business confidence is the key to unlocking economic growth.
Speaking at the BCC's Global Annual Conference in London today, Director General Shevaun Haviland will say that successive governments have made it increasingly expensive to do business, with policy-imposed costs on the average SME rising by more than 70% over the past decade.
She will argue that political leaders must resist the temptation to place additional financial burdens on firms if they want the economy to generate the growth needed to support public spending.
"Taxing businesses more would be a road to ruin," Haviland is expected to say. "The quickest way to destroy the fragile confidence that we have left. You must back businesses, not tax them, if you want to see growth."
Haviland will also warn that a lack of business confidence has become a major barrier to investment, innovation and trade, creating a cycle that continues to suppress economic growth.
"The difficult truth is, whoever leads the UK, the primary challenge remains the same – delivering growth," she will say.
"Outside of the pandemic rebound, UK growth has flatlined year after year."
She is also expected to call for changes to ensure the Employment Rights Act does not undermine employer confidence, urging government, business and trade unions to work together to strike a balance between strengthening workers' rights and protecting employment.
The conference programme also includes speeches from Chancellor Rachel Reeves, BCC President Andy Haldane, Shadow Chancellor Sir Mel Stride, Liberal Democrat leader Sir Ed Davey, Reform UK's Robert Jenrick and Green Party leader Zack Polanski.