Why the cost of doing business is holding back growth
Growth is talked about constantly, but I think we sometimes overlook something rather obvious. Businesses need the confidence and financial headroom to invest before meaningful growth can happen. Right now, the cost of doing business in the UK is making that increasingly difficult ... The high cost of doing business is hindering growth in the UK economy CBI analysis estimates that UK businesses paid almost £345 billion in taxes during 2025/26, 12.7% more than the previous year. Employer National Insurance alone accounted for £123.1 billion. Meanwhile, modeling by the British Chambers of Commerce suggests that domestic policy-driven costs for a typical SME have risen by more than 70% since 2016. That inevitably affects the decisions businesses make!When the cost of doing business in the UK rises, money that might have funded new equipment, additional employees, premises, or expansion must be allocated elsewhere. The latest BCC economic forecast expects business investment to fall by 0.2% during 2026, with only modest growth forecast for 2027. Manufacturing shows the problem particularly clearly. Research shows improving orders and confidence, but says employment, energy, and input costs are still weighing heavily on recruitment and investment decisions. Industrial energy costs remain a particular concern, with manufacturers warning that high electricity prices are harming Britain's international competitiveness.Of course, businesses have always had to cope with changing costs and economic conditions. Nobody running a company expects the government to remove every risk. But there is an important difference between normal commercial risk and the repeated changes in the environment in which businesses are expected to plan. That is why I believe stability matters just | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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