Healey pledges to cut business costs in coming Budget

Summarised from 5 outlets · Updated 22 Oct, 08:39 · Archive

Chancellor John Healey has pledged his Budget will address reducing the cost of doing business and supporting entrepreneurs.

Chancellor John Healey has pledged that his first Budget, scheduled for 28 October, will focus on reducing the cost of doing business and supporting entrepreneurs. Speaking to The Times, Mr Healey said he wanted to back profit-making businesses and those entrepreneurs who challenge the status quo and come up with innovative ideas.

Mr Healey acknowledged that firms have been under 'a lot of pressure' in recent years. He cited changes to employment law, regulation, higher taxes and disruptions to global supply chains as factors affecting businesses. Employer National Insurance contributions were increased from 13.8 per cent to 15 per cent under his predecessor Rachel Reeves, a move that came into effect last year and has drawn complaints from major employers about millions of pounds in additional costs.

The Chancellor said he was 'conscious' that businesses were also suffering under the cost-of-living crisis. He stated that backing business would see companies put money back into their operations, delivering growth. 'If you're not making a profit, you've got nothing to put back into the business,' he said. He indicated his Treasury operation has already ruled out any increase in capital gains tax, fearing its impact on investment in the UK.

City AM reported that Mr Healey signalled plans to reduce smaller firms' reporting burden as part of the drive to ease the cost of doing business. The outlet also reported that the Chancellor took many in the business and financial community off-guard when appointed by Prime Minister Andy Burnham.

Mr Healey defended Rachel Reeves's decisions, insisting they were necessary to repair damage caused by what he called the previous government's 'dereliction of duty' on the economy. The Independent reported that government borrowing rose by more than expected to £24.5 billion for last month, underscoring constraints in public finances ahead of the Budget.

However, one retail boss quoted by the Daily Mail struck a sceptical note, saying retailers would be 'choking on our cornflakes' at the remarks and describing Labour's first two years in power as 'horrific' and 'pretty brutal'. Fears have been running high that banks may be targeted for additional tax in the Budget to raise revenue amid economic pressures.

The Chancellor's comments came as he sought to rebuild the damaged relationship between Labour and the business community after the government targeted the private sector for revenue at three consecutive fiscal events.

How it is being reported

• Chancellor scrambles to ease business nerves over Budget saying he wants to cut 'costs' and reward 'profit'... as firms warn Labour's first two years have been 'horrific'John Healey went out of his way to deliver a pro-enterprise message in an interview, with less than a week to go until the crucial fiscal package.Daily Mail · 22 Oct, 08:32
• John Healey vows to be a chancellor ‘who backs business’ ahead of BudgetChancellor says he is seeking to rebuild the damaged relationship between Labour and businessThe Independent · 22 Oct, 08:03
• Healey: I want to help bloody-minded foundersJohn Healey has pledged to devote next week’s Budget to “bloody-minded entrepreneurs”, acknowledging small and fast-growing businesses have been “under pressure” from a barrage of fresh taxes and regulation. The Chancellor said he would clamp down on the “cost of business” as well as on the cost of living, promising to patch up relations with [...]City AM · 22 Oct, 07:56
• John Healey vows to slash cost of business in Budget aimed at 'bloody-minded entrepreneurs'Chancellor John Healey claimed he was as focused on cutting the 'cost of business' as the cost of living, and admitted many firms had been under 'a lot of pressure'The Mirror · 22 Oct, 07:55
• Chancellor to aim his Budget at cutting cost of business and supporting entrepreneursJohn Healey said he wanted to back profit-making businessesEvening Standard · 22 Oct, 07:40

In this story: John Healey · Rachel Reeves · Andy Burnham · Keir Starmer · UK

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