UK’s Investment-Boosting Tax Breaks Fail to Win Over Businesses

British businesses are keeping their investment plans on ice because of high debt-servicing costs and a stagnant economy, a survey found.

The British Chambers of Commerce warned sluggish corporate investment will be the economy’s “Achilles’ heel,” with firms reluctant to boost spending plans despite government tax breaks designed to encourage it.

The findings suggest stagnant investment will continue to hold back the UK economy, which the Bank of England expects will produce zero growth in 2024. Many companies are deciding to pay down debt to shore up their finances instead of pumping money into new projects.

That’s a blow ...