Kate Nicholls, chief executive of UK Hospitality, which represents pubs, restaurants and cafes across the country, added tax rises would be a “brake on growth” for the UK.
“Businesses on paper-thin margins are already grappling with big increases in employment costs – we are seeing jobs and hours cut, investment slashed and business viability undermined as well as prices going up,” she added.
The government is pledging to be both “pro-business” and “pro-worker” in its policy decisions.
Reeves confirmed Income Tax, National Insurance for employees and VAT would not be increased.
While inflicting the pain of tax rises on businesses, the chancellor offered some relief to small firms, by uplifting the amount they can claim back off their National Insurance bill.
However, Paul Johnson, director of the Institute of Fiscal Studies think tank, described the measure as “very small beer”.
The chancellor also said the 75% relief on business rates, which are charged on most non-domestic properties such as shops, offices, pubs and factories and were due to expire in April, would be replaced by a 40% discount for retail, hospitality and leisure companies next year.
