While Bridget Phillipson claims Labor’s ‘number one mission’ is economic growth, alarming new figures show 1,600 businesses will close this month.

A squirming Cabinet Minister has claimed the new government is prioritizing growth in this week’s Budget; Economists fear it will be one of the biggest corporate tax raids of the modern era.

But figures show a rise in the number of business owners closing up shop amid widespread concerns that Chancellor Rachel Reeves will raid capital gains tax in a bid to raise £40bn.

More than 1,600 company executives have opted to close their businesses so far this month, according to notices sent to The Gazette; That’s the highest number of closings this year and more than double the number for the entire month of last October.

Sir, there has been a significant increase in business closures since August. Keir Starmer He warned that the party’s first budget would be “painful”.

But the Education Secretary appeared to dismiss concerns this morning, claiming the UK’s “best days are ahead” and promising that the Budget will aim to “invest in the long-term prosperity of our country”.

Speaking to Sky News’ Sunday Morning with Trevor Phillips, he said: “We face some difficult choices but we need to bring stability back to the economy.”

He added: “But the choice for this Budget is: ‘Do we invest in the long-term prosperity of our country, or do we accept that we are on the path to decline?’

“I think our best days as a country are ahead of us, and this Budget will fix those foundations so we can get our country back on track.”

The Cabinet Minister refused to say whether Labour’s pledge not to increase income tax, VAT or national insurance would remain in place for the next five years.

Asked whether the commitment applied to the whole of Parliament, Ms Phillipson said: “We think taxes on employees are already too high, because that’s what they face.” conservatives.

“I cannot speculate on either this Budget or future budgets, you will understand, and if I did I would be in big trouble with the Chancellor, Rachel Reeves.”

Ms Reeves will announce a significant two percentage point increase in employers’ national insurance, as well as cuts to the earnings thresholds at which employers start paying national insurance contributions.

According to the Institute for Fiscal Studies (IFS), the measures are planned to total up to £20bn, which would represent “one of the largest tax rise measures of modern times”.

Anna Leach, chief economist at the Institute of Directors, said there was “huge frustration and huge disappointment” among business leaders ahead of the Budget, who felt Sir Keir “said he understood things but clearly he didn’t”.

He added: “How can we be sure that the government will be interested in real stability rather than cheap political gains?”

Changes to the non-dom regime, along with an expected crackdown on capital gains tax that could lead to higher rates of taxation of business owners as well as shareholders, have been blamed for pushing millionaires to leave Britain.

The Chancellor is expected to extend a freeze on income tax thresholds for so-called “stealth tax”, which will force millions of people to pay higher tax rates and also end inheritance tax exemptions for businesses and farmland.

It will also rewrite fiscal rules to unleash a borrowing spree of up to £50bn, experts say. interest rates stay higher for longer and risk driving up mortgage prices.