Is it a "robbing Peter to pay Paul" style budget? UK finance minister imposes 26 billion in taxes and is collectively criticized by business leaders.

British Chancellor Rishi Sunak plans to strengthen the national finances by increasing taxes by 26 billion pounds (34 billion dollars), but this has been collectively criticized by several chief executives of large companies in the UK. Business leaders from industries including hotels, insurance, and banking have expressed that the budget fails to lay the groundwork for economic growth in the UK. Some CEOs even described it as a "robbing Peter to pay Paul" budget, believing that more radical measures should have been taken. Before the budget was announced on Wednesday, these business leaders had indicated that they might cut investments if costs continued to rise. Now that the tax increase has been confirmed, some businesses are planning their next steps, which may include layoffs in the hardest-hit industries. Here are the key points of view from some business executives: Butlin's CEO Jon Hendry Pickup The CEO of this holiday resort operator stated that the continuously rising commercial property tax rates would "undoubtedly" force companies to slow down their investments in the UK and reduce planned hiring. Sunak's plan to impose additional taxes on warehouses and large stores was seen as targeting "online giants," but Hendry Pickup expressed that this policy would also impact Butlin's. "I understand that formulating the budget is a difficult task - we have to achieve fiscal balance - but it feels like not everyone is sharing the burden," he said. Hendry Pickup also criticized the newly introduced tourism tax, warning that it would have the most severe impact on low-income British holidaymakers. "The government continues to impose these abnormal costs on the hotel and catering industry, and these costs will ultimately be passed on to ordinary workers." Peel Hunt Ltd. CEO Steven Fine The CEO of this investment bank had called for Sunak to raise income taxes, and he expressed disappointment that the government did not take bolder steps to "resolutely respond." He stated that Sunak instead chose a budget consisting of a series of small-scale measures, which he described as a "robbing Peter to pay Paul" style budget that offered no benefits to long-term economic development. However, Fine also noted that the market's positive response indicated investor support for the 220 billion pound fiscal space, which still allows room for the Bank of England to cut interest rates and stimulate growth. "The situation could have been much worse," he said. "I don't think this is a budget to curb inflation, but a downward trend in inflation is forming, and this budget does not undermine that trend." Phoenix Group Holdings Plc CEO Andy Briggs For the CEO of this insurance and savings group, the core concern was the government's announcement to set a cap on workplace pension salary sacrifice schemes - limiting the amount of salary that does not require national insurance contributions. "We should be making it easier, not harder, for people to build financial security," he added, saying that the new restrictions could prompt individuals and employers to reduce pension contributions. Young & Co.'s Brewery Plc CEO Simon Dodd The CEO of this pub operator expressed that the increase in alcohol taxes would have a severe impact, and the raise in the minimum wage would be a "1.4 billion blow" for the industry, leading to businesses ceasing recruitment. He pointed out that all of this was happening at a time when the hospitality industry was already facing low consumer sentiment and rising costs. "For young people, finding a job in an industry that has always been their main employment channel will become even more difficult." Funding Circle Holdings Plc CEO Lisa Jacobs The CEO of this commercial lending provider stated that the budget was "relatively mild" for small businesses. She mentioned that small and medium-sized enterprises would benefit from adjustments to commercial tax rates and government support for apprenticeships, but as the "growth guarantee program" aimed at helping small businesses secure financing remained unchanged, they would not be able to access more funds. "I hope to see the government shift from the current 'stability narrative' to actively supporting British businesses, giving them confidence to grow." Associated British Foods Plc CEO George Weston The CEO of this parent company of Primark welcomed the government's commitment to close the tariff loophole on low-value imports, as he had previously expressed that this loophole gave unfair advantage to cheap retailers like China's Temu and Shein, while harming traditional stores. "This policy needs to be implemented swiftly to prevent further damage to British retailers," he said. "Delaying it for four years will prolong the harm caused, which is unacceptable." Weston stated that although the reform of business tax rates was positive for Primark as a whole, he was "disappointed" that large stores were not exempt from high property taxes. Additionally, while other retail businesses criticized the raise in the minimum wage, Weston believed that it could enhance consumers' purchasing power, "helping to boost consumer demand and footfall on high streets." Auto Trader Group Plc CEO Nathan Coe The head of this car buying platform found the government's approach to electric vehicles "confusing." Previously, Sunak confirmed that pure electric and plug-in hybrid cars would be taxed based on miles driven, aiming to raise 1.4 billion by the end of the decade - meanwhile, the government is working to promote the use of zero-emission vehicles. The UK Office for Budget Responsibility estimated that this policy could lead to a decrease of 440,000 electric vehicle sales in the coming years. "We are sending confusing messages here," Coe said. Sage Plc CEO Steve Hare The CEO of this software company stated that the budget took a "cautious" approach that would benefit small businesses, and he welcomed the plan to introduce mandatory electronic invoicing. He also emphasized that the government's commitment to setting up an artificial intelligence growth area and promoting the development of the UK tech industry more broadly showed a "real commitment to digitalizing the economy."