Latest news with #IoD
Yahoo
9 hours ago
- Business
- Yahoo
Reeves warned fresh tax raid would ‘undermine the economy'
Rachel Reeves has been warned that a fresh tax raid to fund benefit U-turns risks 'undermining the UK economy', as business confidence crumbles. The Institute of Directors' (IoD) closely watched survey of bosses confidence tumbled to -53 in June from -35 in May. The lobby group blamed the impact of the Chancellor's National Insurance tax raid, which took effect in April, and gloom from Donald Trump's trade war. Against this weak backdrop, Anna Leach, the IoD's chief economist, warned that a further tax raid in the autumn risked being self-defeating as it could cripple growth and lead to even lower taxes for the Treasury. She said: 'If you go after businesses again, there is a very real danger of that undermining the UK economy and leaving it in a less stable position – and undermining the very revenues that you're trying to drive up.' Mel Stride, the shadow chancellor, said the IoD's numbers were 'a stark reminder that Labour's broken promises are hitting business confidence hard'. He said: 'Instead of fostering growth, the Chancellor's costly jobs tax and reckless regulatory overreach are driving uncertainty and squeezing investment.' The IoD's warning comes amid mounting speculation that a succession of U-turns by Sir Keir Starmer will leave Ms Reeves with little choice but to raise taxes by billions of pounds later this year. Climbdowns on sickness and disability benefits leaves the Chancellor with a shortfall of around £2.5bn, on top of a £1.25bn hit from backtracking on winter fuel payment cuts. Alongside other pressures, Ms Reeves faces a shortfall of around £20bn against her fiscal rules in autumn, warned economist James Smith, of Dutch bank ING. 'The Government has probably gone as far as it can politically on the spending side, which means tax rises are more likely,' he said. 'It's going to be hard to avoid looking at the major taxes. I can imagine employer National Insurance going up again. But a one percentage point rise raises £6bn, so the Treasury is probably going to have to go further than that.' Labour's manifesto pledges include not raising the key taxes working people pay, including income tax, National Insurance and VAT. As a result, businesses are likely to be targeted again in the autumn. Ms Leach warned that bosses were nearing their limit after being hit with big increases to costs and changes to inheritance tax, just as they face an increase in global instability. She said: 'The Government has been much more radical in taxing business than it has been in removing blockers to growth. The risks from putting a higher burden of taxes on the businesses that I'm talking to are pretty stark. They are going to leave, that's what they say, or they're going to wrap up their businesses. There is a limit, inevitably. 'We need to see faster progress and greater ambition on de-regulation – particularly planning reform – and a reconsideration of the tax landscape for business if we're to change the UK's economic fortunes.' The IoD's survey found 30pc of bosses planned to cut their jobs, while only 19pc expected to hire more people. More employers have said they are shrinking employee numbers than growing them every month except one since Ms Reeves's maiden Budget in October, according to the survey. Separate figures show food inflation jumped to 3.7pc in the 12 months to June, the highest in more than a year and up from 2.8pc in May. Helen Dickinson, the chief executive of the British Retail Consortium (BRC), said the leap was to be expected after the Government hit businesses with a surge in taxes and costs. She said: 'Retailers have warned of higher prices for consumers since last year's autumn Budget and the huge rises to Employer National Insurance costs and the National Living Wage. 'We predicted a significant rise in food inflation by the end of this year, and this has been accelerated by geopolitical tensions and impacts of climate change. 'To limit further rises, [the] Government must find ways to alleviate the cost pressures bearing down on retailers.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
5 days ago
- Business
- BBC News
Confidence in Guernsey economy growing, survey suggests
Business leaders in Guernsey have more confidence in the economy than six months ago, despite ongoing financial pressures, a survey by the island's Institute of Directors (IoD) than two thirds (67%) of respondents said they expected their costs to increase over the next 12 months, consistent with the last although businesses still plan to invest and hire more staff, their expectations for profits have improved marginally - but remain negative IoD said the survey aimed to build a picture of trends and the impact of changing local and international factors on businesses in the bailiwick. Richard Hemans, the IoD's local lead on the economy, said: "Confidence remains highest in finance and professional services but has fallen in construction and retail."Despite a backdrop of ongoing challenges, it's encouraging to see the continued resilience of Guernsey's businesses, particularly their willingness to maintain investment and employment plans." Mr Hemans said the information would give useful economic data to Guernsey's newly elected Deputies and civil said business leaders wanted to see "strong leadership, bold decisions, and faster action on infrastructure, housing and connectivity" from the new survey highlighted the cost and availability of labour was now the top negative impact for members, overtaking air and sea links, although the latter remained a major concern.
Irish Examiner
6 days ago
- Business
- Irish Examiner
Majority of company directors expect improved financial performance in second half of 2025
Despite geopolitical turmoil and mounting international trade tensions, more than half of company directors in Ireland expect an improved financial performance in the second half of 2025, a new survey shows. The survey was conducted on 322 business directors by the Institute of Directors (IoD) focusing on areas such as regulation, competitiveness, and the economic outlook. The survey found that 53% of business leaders expect improved financial performance in the second half of 2025. However, 43% feel more pessimistic about the overall prospects of the economy. In terms of risks to their business for the rest of the year, 51% cited economic and fiscal pressures, while 42% cited international trade tensions. Geopolitical risks to the supply chain were cited by 28% of people. Of the directors who believe that international trade tensions will be the greatest risk to Irish business for the remainder of the year, 54% believe that it will lead companies to reduce discretionary spending and investment while 48% said they expect consumers to delay spending decisions. In particular, when respondents were asked about the potential impact of the proposed US tariff rates on EU goods and services, 43% said they expect a negative effect on their organisation's competitiveness and business development while 32% stated it was too soon to tell. IoD Ireland CEO Caroline Spillane said there is a 'sense of cautious optimism' among company directors regarding the near-term outlook, however, there are 'significant concerns about the impact of global trade tensions and increasing regulatory pressures'. When asked what would be the main drivers for growth, 42% of directors said enhancement of products and services, while 38% said improvements to their customer or client experience and engagement, and 33% said digital transformation and innovation. Lower on the list of priorities included becoming a sustainable business, accounting for just 10% of respondents. The directors surveyed all represent a wide range of businesses as well as State or semi-State bodies, not-for-profit organisations, SMEs, and multinationals. When asked about how important AI is for future business competitiveness, 40% of respondents said that is important for improving operational efficiency, while 25% believed that it is critical for staying ahead of competitors. Read More Ireland facing sand and gravel shortage due to planning delays, industry warns
Leader Live
21-06-2025
- Automotive
- Leader Live
Behind-the-scenes visit to JCB Transmissions Wrexham
Organised by the Institute of Directors (IoD) North Wales, attendees toured the facility in Wrexham and received expert insight into the company's role in manufacturing components for carbon efficient machinery from JCB operations director Craig Weeks. Guests were equipped with professional leadership knowledge as Craig shared his career journey with the multinational manufacturing business, as well as highlighting key decisions made to increase business growth and efficiency. Read more: Five lawyers at North Wales firm celebrate qualifying as solicitors He also revealed practical ways the firm invests in its workforce by utilising training opportunities provided by the North East Wales Skills Academy (NEWSA) and Gatewen Training Services. David Roberts, chair of North Wales IoD, believes the event spotlighted JCB's innovation and contribution toward Wales' net zero by 2050 target. He said: "From its latest hydrogen generator technology to its production of gearboxes, axles, and transmissions systems, it's evident that JCB Transmissions is paving the way as a leader in creative, cutting-edge renewable technology. Read more: From homeless mum to award-winning Flintshire business owner "Moreover, I think the experience gave guests the chance to understand ways in which they could make more informed investments and the long-term benefits of upskilling members of their respective teams. "Seeing business leaders and directors attend from across Wales was also very encouraging and I hope they feel more empowered to excel in their industries." Speaking about Craig, an IoD North Wales Skills Development award winner, David added: "I think there is a lot to learn from his leadership. Read more: Tutoring company launches to help learners study in the Welsh language "His careful, considered allocation of company resources, alongside his career path from axle and gearbox technician to operations director, demonstrates great creative direction and tenacity. "Overall, building a supportive and welcoming culture in any firm is essential for longevity and it's something I think JCB Transmissions showcased to all attendees." • To become an IoD volunteer, contact David Roberts on 07899 910 293. For more information and to view upcoming events on the IoD in North Wales, visit
Otago Daily Times
13-06-2025
- Business
- Otago Daily Times
Leading the leaders; changing times for directors
How times have changed. When Kirsten (KP) Patterson was appointed chief executive of the Institute of Directors (IoD) eight years ago, one of the very first issues she encountered was a conversation around whether climate change was a governance issue. Now the IoD-hosted initiative Chapter Zero NZ — which is part of a global climate governance initiative that spans 50 countries and is focused on supporting directors to take action on climate change at a board level — has nearly 3000 members. Ms Patterson was in Dunedin this week to speak about ethics at an IoD Otago-Southland branch event, and to attend its annual chartered member and fellows dinner where — alongside Ranfurly-based director Dawn Sangster — she spoke about governance and leadership. Both women were made Members of the New Zealand Order of Merit in this year's New Year's Honours for their services to governance and women. The level of change happening in the world — which was impacting all organisations, whether not-for-profits or listed companies — was so broad, and boards had to be across that complexity and breadth of issues, Ms Patterson said. As chairwoman of the Global Network of Directors Institutes, she had the opportunity to see the global trends via the more than 20 countries represented in that organisation. Not surprisingly, the big issues at present included geopolitics, trade and globalisation, but the approaches to those challenges from different countries and industry groups was quite different. Cybersecurity was the number one issue keeping directors awake at night but, in New Zealand, where IoD members were surveyed each year, that was not in the top three. The big issue coming through very clearly here was economic conditions, then there was also climate change and culture. New Zealand was the first country in the world to introduce laws around climate-related financial reporting and a lot of focus and attention had been put into the issue. While cybersecurity was not hitting that top three of major issues — although it would be for some boards and industries — she would like to see more focus from boards on it. Boards also needed to lean into the conversation around ethical use of artificial intelligence (AI) and the IoD had developed nine principles to help boards to ethically adopt and effectively use AI. Ms Patterson is chairwoman of the Brian Picot Ethical Leadership advisory board at Victoria University. There was specific research in ethics, particularly in the business space, and it was great to have snapshots of what was happening, she said. While there were lots of conversations about purpose and values, there were still not enough organisations having conversations about ethics, she believed. Governance was critical, whether it was for sports clubs or corporates, involving people being relied on to come together and make judgements and choices. The space had changed. For things that were known and certain, for which there were answers, then management would take care of that. Boards were left with the "tricky stuff". Governance provided intellectual stimulation. It required curiosity and a lot of different skills to bring diversity of thought. That was what she loved about IoD communities which were diverse — much more than what people might think — and there were some great people coming through the governance pipeline, she said. "I genuinely believe the difference between whether you're building yourself a job as business owner or building something you could sell is about governance. The business needs to be able to live after you and continue after you," she said. Workload for directors was surveyed by the IoD, and that had peaked around the Covid-19 pandemic. There had been an increase in the hours involved which included work outside board meetings, whether that was the likes of site visits and engaging with staff, or engaging with stakeholders. Boards were much more visible now and, because of the complexity of issues, the amount of learning and thinking and preparation required was greater. It was not about just reading the board papers on the plane on the way to a meeting, she said. Using a sporting analogy, Ms Patterson said boards were a team sport. Directors like Dunedin's Trish Oakley, recently elected national president of IoD, were individual high performing athletes who were training at home. Then those athletes came together to perform as a team. It was an exciting time to be involved in with governance. While directors needed to be comfortable with risk and responsibility, there was an opportunity to see inside so many different organisations and help shape their strategy, culture and framework — "and New Zealand's better off for it", she said.
