Business groups across the UK have issued a stark warning to the Government ahead of the Autumn Budget, calling for decisive action to support enterprise, encourage investment, and resist further tax rises on firms already facing mounting pressures.

In a pre-Budget statement delivered earlier this week, the Chancellor signalled that “difficult choices” lie ahead, prompting a swift response from the Confederation of British Industry (CBI) and the British Chambers of Commerce (BCC).

Rain Newton-Smith, Chief Executive of the CBI, welcomed the Chancellor’s focus on growth but urged her to ensure the policy framework delivers tangible outcomes for the private sector.

“The world has changed in the last 12 months and when geopolitics and global markets shift; the policy response must shift too,” she said. “A Budget that backs business to create jobs and innovate, that champions our world-class universities and strengthens the UK’s position as a global leader in life sciences and financial services, will help secure the path to sustainable economic growth and higher living standards.”

While emphasising the importance of economic stability, Newton-Smith warned against “short-term fixes that risk stalling the engine of growth”, pointing to the highest business tax burden in 25 years as a key concern.

Echoing those sentiments, the BCC said the upcoming Budget, expected on 26 November, represents a “make-or-break moment” for British businesses already grappling with cost pressures, skills shortages and low confidence.

Jonny Haseldine, Head of Business Environment Policy at the BCC, said that further tax increases would undermine efforts to grow the economy and improve productivity.

“None of that is possible if costs continue to pile up on firms,” he said. “Our latest research shows business confidence and investment levels continue to suffer. A fifth of firms are expecting lower turnover for the next year, and a quarter have scaled back investment plans.”

The BCC is calling for targeted support that improves the trading environment, addresses labour market challenges and accelerates infrastructure improvements.

While business groups agree with the Government’s stated priorities of reducing inflation and boosting growth, they caution that without bold action and a clear roadmap for enterprise, firms may continue to delay investment and recruitment, further hampering the UK’s fragile economic recovery.

The Autumn Budget will be unveiled just three weeks before the Government is expected to begin its pre-election positioning, with political and economic uncertainty looming large over the final fiscal statement of the year.