BUSINESS confidence “continues to dive on the Chancellor’s watch”, Conservative Central Devon MP and Shadow Chancellor Mel Stride has claimed, citing a recent British Chambers of Commerce survey.

Carried out between November 11 and December 9, the poll follows the Budget last autumn in which Chancellor Rachel Reeves announced a rise in the amount of National Insurance employers must pay on what their employees earn.

The survey of more than 4,800 UK businesses found 55 per cent are expecting prices to go up in the next three months, with labour costs “the biggest driver”.

And just 49 per cent of firms said they expect to see an increase in income over the next year, the lowest figure since the aftermath of the “Mini Budget” when Conservative Liz Truss was Prime Minister in late 2022.

Mr Stride said: “Six months ago, Labour inherited the fastest-growing economy in the G7, low inflation and low unemployment.

“The new year sees growth gone, inflation up and businesses slashing hiring rapidly.

“Labour’s choices mean fewer jobs and higher everyday costs for working people – it is time for the Chancellor to think again.”

In response, a spokesperson for HM Treasury said: “We delivered a once-in-a-parliament Budget to wipe the slate clean and deliver the stability businesses so desperately need.

“We have ensured more than half of employers will either see a cut or no change in their National Insurance bills, and by capping the rate of corporation tax, establishing a National Wealth Fund, and creating pension megafunds, we are bringing back political and financial stability, creating the conditions for economic growth through investment and reform.

“This is just the start of our plan for change which will get Britain building, unlock investment, and support business so we can make all parts of the country better off.”