Nearly nine in ten firms in the capital fear the upcoming Autumn Budget will hinder rather than help them, according to a new survey from the London Chamber of Commerce and Industry

(LCCI).

The findings, drawn from more than 360 business leaders, highlight mounting anxiety over potential tax rises, escalating employment costs and what many see as dwindling government engagement with the business community.

Tax concerns dominate.

An overwhelming 95% of respondents said they were worried about the impact of higher taxes, warning of knock-on effects such as falling profits (60%) and cuts to investment (50%). Half of London companies said they expect to freeze pay, scrap bonuses or halt recruitment if tax pressures intensify — a trend emerging against a backdrop of rising unemployment.

Employment costs add further strain.

Sixty per cent of firms warned they would reduce or pause hiring if employing staff becomes more expensive, while more than one-third said redundancies could become unavoidable. Recruitment pipelines are already weakening: 37% of businesses report difficulty filling vacancies, and a third say they are not hiring at all.

Clear demands for policy change.

Seven in ten leaders called for tax cuts to release funds for hiring and investment, while six in ten urged the government to reverse or scale back the National Insurance hikes introduced in April 2025. More than half want lower business rates and broader action to reduce the overall cost of employing workers.

Confidence in government is faltering.

Despite strong views on what support is needed, 65% of respondents said they have little or no confidence that Chancellor Rachel Reeves will take their concerns on board. That scepticism feeds into a pessimistic economic outlook: 78% of businesses do not believe the government will deliver growth, including two-thirds who express no confidence at all.

The survey offers a stark warning from London’s business community ahead of the Budget, underscoring fears that current policies may hold back the capital’s economic recovery.

Commenting on the findings, Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry said:

“This survey sends a clear and urgent message: businesses are already under immense pressure, and the anticipated measures of the upcoming Autumn Budget risk making a difficult situation far worse. Companies want to invest, hire and grow, but rising taxes and higher employment costs are pushing them in the opposite direction. The Chancellor must recognise the scale of concern across the business community and act decisively to restore confidence.

"The reversal of plans to raise income tax rates - a measure that 75% of London business leaders were extremely concerned about - is a positive sign that the Chancellor is listening. But it’s not enough. The Autumn Budget must back growth, not burden it. That means cutting unnecessary taxes, reducing business rates and reintroducing VAT-free shopping to keep London competitive on the global stage. Businesses also need a clear plan to tackle skills shortages, support young people into work, and ensure access to the talent London depends on.

“London firms are ready to invest and expand, but they need the conditions to do so. The Government must deliver a Budget that empowers businesses to trade, hire and compete internationally, because when London thrives, the UK thrives.” Photo by Kirsty O'Connor / Treasury, Wikimedia commons.