Looking ahead, about two-thirds of business leaders fear further tax rises, and a majority of the 500 respondents expect slower hiring than planned in the wake of the Budget.

A new business rates surtax on larger properties over £500,000, including supermarkets, is introduced to fund a permanent discount for smaller retail, leisure, and hospitality firms, adding another cost pressure for businesses.

The Budget extends the freeze on income tax thresholds to April 2031, keeping them unchanged for three more years and projected to raise roughly £7.6 billion for the Treasury by 2030, a move many leaders say constrains firms’ cash for growth.

The findings come from a post-Budget poll conducted by WPI Strategy and Merlin Strategy to gauge sentiment in the immediate aftermath of the Budget statement.

Context for the poll: leaders weigh policy measures against practical effects on hiring and growth in the near term.

There is a sentiment among leaders that raising income tax rates, rather than other taxes, could have been a better way to boost revenue without dampening investment.

Revenue implications aside, 56% of respondents think increasing income tax would have been a better overall policy than widening the tax mix.

The extended threshold freeze is seen as the most damaging element, with about 47% of leaders saying it will negatively impact their business and staff, though 45% consider it justified to raise revenue.

Alongside the threshold policy, the Budget also raises the national minimum wage from April, adding to cost pressures on employers while aiming to support workers.

Despite 45% support for preserving the tax-threshold freeze, a majority of 56% would have preferred raising income tax and leaving other taxes unchanged to avoid broad spending constraints.

Experts from WPI Strategy say the Budget has not jump-started growth or boosted corporate confidence needed for investment, expansion, and hiring, though it has not markedly worsened sentiment either.

Overall, the Budget’s extended threshold freeze is projected to raise £7.6 billion by 2030, but the policy mix leaves many leaders uneasy about growth and hiring.