The Confederation of British Industry (CBI) has warned that business margins are being squeezed and profits are being hit as a result of the measures announced by Chancellor Rachel Reeves at the Autumn Budget.

A post-Budget survey carried out by the business group showed that two thirds of firms believe that the measures announced will damage UK investment, with half of businesses seeking to reduce headcount as a result.

The CBI has called on the government to take action on the ‘pressing challenges’ facing business, including reforming the business rates system, improving flexibility of the Apprenticeship Levy and building for the long-term by using the Industrial Strategy to ‘mobilise the everyday economy’.

Speaking at the CBI’s Annual Conference, Rain Newton-Smith, CEO of the CBI, said: ‘Tax rises like this must never again be simply done to business. That’s the road to unintended consequences. From now on we need an elevated partnership for a higher purpose.

‘Too many businesses are having to compromise on their plans for growth.

‘National Insurance Contribution (NIC) rises are one lever government has chosen to pull that’s piled on the pressure. So we must open a valve to ease that.’