Half of UK Firms to Raise Prices After £26 Billion Tax Hike.

A recent survey conducted by the Bank of England revealed that over half of UK businesses are planning to raise prices and cut jobs in response to a £26 billion tax hike on employer payroll taxes. The tax hike, implemented by Chancellor Rachel Reeves, has led to concerns about increased inflationary pressures and potential impacts on interest rates. The findings suggest a policy dilemma for the Bank of England, as businesses anticipate passing on the tax hike to consumers through higher prices and reducing employment. Governor Andrew Bailey stated that the BOE will monitor how firms respond to the tax hike before making further decisions on interest rates. [Extracted from the article]