Firms to grow yet taxes bite

BUSINESSES will strengthen and the economy grow in 2011, according to a confidence index released today.

While business morale fell for the fourth consecutive quarter, the decline has slowed this year -- and financial performance indicators stand at their highest rates since 2008, accountants’ group ICAEW said.

Private industry will create 100,000 new jobs in 2011, the survey said.

Yet tax hikes are imposing a growing barrier to growth, the survey revealed. Over a fifth (21 per cent) of firms reported a more challenging tax burden than a year ago.