9 in 10 London firms believe the Autumn Budget will hold businesses back
LCCI survey exposes urgent concerns of the London business community in a stark warning to the Chancellor.
Tuesday 18 November 2025
A new survey from the London Chamber of Commerce and Industry (LCCI) of over 360 business leaders in the capital has revealed the widespread concern mounting ahead of the Autumn Budget, driven by fears of tax hikes, rising employment costs and a government that most feel is no longer listening.
Concerns around tax increases dominate. More than 9 in 10 leaders (95%) are concerned about the impact of tax rises on businesses, anticipating detrimental consequences, including a fall in profits (60%) and reduced investment (50%). Half of London firms say they will be forced to freeze pay, pause bonuses, or halt hiring altogether as a result at a time of rising unemployment.
On top of this, the threat of rising employment costs looms large. If the cost of employing workers increases further, 60% say they will freeze or reduce recruitment, and more than a third say redundancies would be on the table. Recruitment is already under strain, as 37% of businesses say they are finding it difficult to fill open roles, and a third not recruiting at all.
Businesses are clear about what they want instead. 70% favour tax cuts to free up money for firms to hire and invest, while 6 in 10 are calling for a reversal or reduction of the detrimental increases to National Insurance Contributions which came into force in April 2025. Elsewhere, more than half would like to see lower business rates and a reduction in the overall cost of employing staff.
Despite these calls, confidence is low that the concerns of the business community will be heard, with 65% saying they are not at all confident that Rachel Reeves will take their views into account. These pressures feed into a bleak outlook for the wider economy, as 78% of businesses do not believe the government will deliver economic growth, including two thirds expressing a complete lack of confidence.
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.”
ENDS
Notes to Editors
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