{
  "id": 9271816,
  "title": "Baker Tilly chief warns budget may carry ‘pain cost’ for businesses bracing tax changes",
  "url": "https://urgent.news/2026/09/23/baker-tilly-chief-warns-budget-may-carry-pain-cost-for-businesses",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-23T05:00:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/baker-tilly-chief-warns-budget-may-carry-pain-cost-for-businesses-bracing-tax-changes/"
  },
  "original_language": "en",
  "account": "Baker Tilly International's chief executive, Francesca Lagerberg, has cautioned that the forthcoming Budget will likely impose a significant \"pain cost\" on UK businesses anticipating tax changes. Speaking to City AM, Lagerberg expressed that \"the mood music is that it won't be a fun day out,\" indicating widespread concern among stakeholders.\n\nThe predicted tax changes outlined in the Budget, set for 28 October, encompass business rates reform, sector-specific levies, and reductions in the tax gap. Lagerberg highlighted that many businesses would struggle with these changes, stating, \"there are plenty of businesses who would say that their business would be massively hampered by tax changes.\"\n\nFundamentally, the changes necessitate substantial adjustments to enable desired outcomes, albeit at a cost, she emphasized. Earlier this year, a survey by Baker Tilly revealed that UK businesses were contemplating relocating to more stable tax and regulatory environments abroad. Out of 1,500 business leaders surveyed across nine markets, including the US, China, and India, UK firms were found to be the most inclined to relocate.\n\nThis sentiment arises in light of Chancellor John Healey missing key targets on government borrowing before his first Budget, where the UK's borrowing exceeded predictions by £3.5bn. The Office for National Statistics reported that borrowing in August was £18.3bn, surpassing both the Office for Budget Responsibility's estimate and market expectations.\n\nLagerberg indicated that businesses often halt activities for up to six months during periods of policy uncertainty, particularly concerning tax changes. She noted, \"Everybody hates uncertainty, and you do have people who just stop doing stuff and wait until they know what the rules are going to be, and that's never very good for business. These big, grandstanding events are very rarely good for business because you have this lead up to it where everyone's panicking.\"\n\nA Treasury spokesperson clarified that decisions on taxes are reserved for the Chancellor to announce during fiscal events rather than commenting on rumors or proposals.",
  "summary": "The chief executive of professional services giant Baker Tilly International has warned the upcoming Budget will likely carry a heavy “pain cost” for UK businesses bracing for tax changes. “It’s going to be a ride, isn’t it,” Francesca Lagerberg, Baker Tilly International‘s chief executive told City AM. “The mood music is that it won’t be [...]",
  "key_points": [
    "UK businesses face potential 'pain cost' from upcoming Budget tax changes",
    "Chancellor John Healey missed borrowing targets before first Budget",
    "Survey shows UK firms most inclined to relocate for stable tax environments"
  ],
  "editors_take": "The warning from Baker Tilly's chief executive suggests that the upcoming Budget will impose significant costs on UK businesses, potentially prompting some to reconsider investment and relocation plans.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}