Chancellor John Healey has committed to tackling business cost reductions as a key aim for his first-ever Budget, set for next Wednesday, October 28. He plans to target support towards “bloody-minded entrepreneurs” across Britain.
Mr. Healey expressed his awareness of companies grappling with the ongoing cost-of-living crisis and previous tax increases. Some of these fiscal policies were introduced by his predecessor, Rachel Reeves, during Sir Keir Starmer’s premiership.
The Cabinet chief told The Times, “I want to be a chancellor who backs business in Britain making a profit.” He further emphasized supporting innovative entrepreneurs who challenge the status quo, even through difficult times.
Businesses have endured “a lot of pressure” in recent years, according to Mr. Healey. He highlighted changes in employment law, increased regulation, higher taxes, and global supply chain disruptions. These disruptions likely stem from international conflicts.
For instance, Ms. Reeves, during her tenure as Chancellor, raised the employer National Insurance contributions rate. This increase, from 13.8% to 15%, took effect last year. Major employers have since reported millions of pounds added to their operational costs.
“When I talk about the cost of business… I’m conscious of that as I go into the budget for both businesses and households,” Mr. Healey stated. This reflects a broad concern for economic well-being.
His comments followed a government announcement regarding gas drilling approval at the Jackdaw site. This North Sea location, off Aberdeen, is expected to supply domestic gas within weeks, according to Energy Secretary Miatta Fahnbulleh.
However, Mr. Healey faces significant economic challenges before his Budget speech. UK government borrowing recently surpassed expectations, reaching £24.5 billion last month. This underscores tight public finances.
Consequently, the Chancellor is anticipated to increase bank taxes. Higher borrowing costs are currently diminishing the government’s fiscal flexibility. Meanwhile, London business leaders have urged Mr. Healey to grant the Mayor of London new borrowing powers. This would facilitate transport and other infrastructure developments, potentially creating thousands of jobs and new homes.
