Calls are growing for Rachel Reeves to resign following accusations she misled the public ahead of the Budget. The Chancellor claimed there was a £20bn black hole that would need tax rises to fill, when in fact the Office for Budget Responsibility (OBR) had told her she had a £4.2bn surplus. Reeves denies she lied, saying she had been clear that she wanted to build up greater resilience in the public finances. But the Times reports that even cabinet ministers feel misled because the forecasts had been kept secret by Reeves and Sir Keir Starmer. One said: “Had we been told, we might have been in a position to advise against setting hares running on income tax and giving the public the impression we are casual about our manifesto commitments.” Meanwhile, Nigel Farage, the leader of Reform UK, has written to Sir Laurie Magnus, the Prime Minister’s independent ethics adviser, to ask him to investigate whether the Chancellor broke the ministerial code. This comes as shadow chancellor Mel Stride has called for the Financial Conduct Authority to investigate “possible market abuse” by people working in the Treasury and Downing Street in the run-up the Budget. In an attempt to quell anger over the issue, the PM will use a speech today to back Reeves and highlight some of the positive measures in last week’s Budget.

Businesses are anxious about potential tax increases following the Budget, which raised taxes by £26bn. A survey by WPI Strategy and Merlin Strategy revealed that over two-thirds of business leaders fear further tax hikes, with many saying they would be hiring fewer staff than previously planned. One in three directly linked the change in hiring intentions to the Budget. The business leaders polled said the most damaging policy was the freeze on income tax, with nearly half saying the stealth tax raid would have a negative impact on staff and their businesses.

Business advisers have warned that the Government’s decision to cut tax relief cut on employee ownership trusts may deter business sales, disrupt transitions, and negatively impact productivity and workplace culture.

The Chancellor has been warned that new inheritance tax plans set out in the Budget have left family business owners feeling demoralised. From April, firms and farms valued over £1m will face a 20% IHT charge. While a minor adjustment allows a £2m tax-free allowance for married couples, campaigners argue it is insufficient and are calling for the removal of business property relief and agricultural property relief. Neil Davy, chief executive of Family Business UK, said: “I’ve lost count of how many times leaders have told me how demoralised they feel with red tape everywhere and inheritance tax threatening their future.”

Major hospitality chains are preparing to cut jobs and investment due to tax reforms introduced by Chancellor Rachel Reeves, flagging a hike in business rates. Alex Probyn, of property tax consultancy Ryan, has warned many hospitality businesses “face immediate and destabilising increases in tax liabilities.” Tim Martin, founder and chair of JD Wetherspoon, said: “Prices will definitely rise across the industry, profits will be under pressure, and investment will be curtailed,” while Dominic Paul, CEO of Premier Inn owner Whitbread, said “punitive tax increases” announced in the Budget will “place significant extra costs on our business and require us to accelerate cost savings.” Kate Nicholls, chair of UKHospitality, said: “These reforms were meant to level the playing field between the high street and online giants – instead, it’s doing the opposite.”

Business confidence in the UK has hit a near-record low following the recent Budget, according to the Institute of Directors (IoD). Chief economist Anna Leach described the situation as “worrying,” urging the Chancellor to take stronger action to stimulate economic growth. The IoD Directors’ Economic Confidence Index remained at -73 in November, unchanged from October. Leach noted that expectations for headcount and investment have sharply declined, mirroring levels seen during the pandemic. The Office for Budget Responsibility forecasts UK growth at just 1.5% this year, with no significant measures in the Budget to enhance growth despite raising £26bn in taxes.

The Office for Budget Responsibility (OBR) has suggested that if stock prices were to fall by 35%, it could create a £26bn deficit in the UK by 2028. The report says: “A large global equity price correction poses a downside risk to both our economy and fiscal forecast.” The report models two scenarios, with the first seeing both UK and world equity prices falling by 35% from a peak in 2026/27. This, it says, would cause a £27bn fall in forecast tax revenue. This would see the UK deficit widen to £26bn by 2028 – and then narrow to £16bn by 2030. In a scenario where only global equity prices fall by 35%, UK equities would still be hit due to reduced risk appetite and lower domestic confidence. A surge in equity prices, particularly in the tech sector, has driven concern over a market correction.

The Office for Budget Responsibility (OBR) has issued a warning over the risks of increasing the tax burden, saying higher taxes could distort economic activity and complicate growth forecasts. The OBR said taxes on assets are particularly sensitive to market behaviour, making predictions challenging. Warning that a forecast for the total tax take came with “significant uncertainty,” the OBR’s report said: “More generally, a higher level of the tax take increases the risk that incentives within the tax system distort or constrain economic activity by more than expected.”

Accenture is rebranding its employees as “reinventors” to adapt to AI advancements, following a reorganisation into “Reinvention Services” amid a consulting market slowdown.

Research from Sage reveals that one in three sole traders still rely on pen and paper for their accounts. The outdated method results in wasted hours, with 23% spending over six hours on end-of-year tax returns. Two-thirds of sole traders use spreadsheets and bank statements, while 33% still track sales and expenses manually. Nearly 70% are unaware of the upcoming digital filing requirement under Making Tax Digital for Income Tax, which affects those earning over £50,000 annually.