Rain Newton‑Smith, chief executive of the Confederation of British Industry (CBI), warned today that record tax burdens are pushing UK companies to a "tipping point." She linked the pressure to Labour’s recent National Insurance (NI) increase and to broader cost spikes from energy bills to higher wages.

CBI says businesses paid a record £345 billion in taxes last year

According to the CBI, firms handed over £345 billion in taxes in the most recent financial year, a level the lobby says is unprecedented since the 2008 financial crisis. The figure includes a £27 billion contribution from Labour’s NI “raid,” which the group argues is eroding profitability across the private sector.

Labour’s £27 billion NI increase fuels CBI alarm

The CBI’s data show that the NI hike alone added £27 billion to the overall tax load, a jump that Newton‑Smith described as a "cash tap" that cannot be turned on without consequence. She cited a recent leak from the Mandelson Files in which senior cabinet minister Pat McFadden admitted MPs were actively seeking new revenue streams to fund benefits.

Employer NI hikes, higher minimum wage and soaring energy bills compound pressure

In addition to the NI rise,the CBI highlighted that employers are coping with higher National Insurance contributions, a rise in the minimum wage, new workers’ rights, and “soaring” energy costs.. These combined pressures have pushed business tax growth to 13 percent—well above the 9 percent rise in overall taxes—making UK firms less profitable than at any point since 2008.

Who will survive the tax surge? Uncertainty over firm resilience

Newton‑Smith warned that many companies are “paddling furiously beneath the surface,” trying to protect jobs while maintaining investment. The CBI did not name specific firms, but the lack of concrete survival data leaves analysts questioning which sectors can aborb the extra £13 billion tax increase without cutting staff or scaling back projects.

Labour’s internal turmoil adds to business unease

The CBI also linked Labour’s leadership disputes to a broader climate of uncertainty, saying politicians “looking inwards” are delaying the decisive action needed to restore confidence.. She stressed that confidence is “the elixir of growth” and that a summer of stagnation would be “materially costly” for the economy.