The government’s former Cost of Living Czar Richard Walker has urged Prime Minister Andy Burnham to implement business tax cuts in the upcoming Budget to stimulate job creation and economic growth, reports BritPanorama.
Walker, who previously served as an adviser under Labour leader Sir Keir Starmer, emphasized the need for a shift in focus from addressing the cost of living to facilitating conditions that enable businesses to thrive and generate employment.
In a pointed commentary, he argued that the government should move beyond bailouts and prioritize reducing business expenses to revitalize the economy. “We cannot fix the cost of living as bailout Britain – in which every problem is answered with another subsidy, benefit or demand on business to pick up the bill,” he asserted.
Walker proposed that by cutting costs, the government could also alleviate the burden of welfare payments and reduce youth unemployment. He insisted that merely offering “warm words towards business won’t be enough” and strongly urged that business taxes be cut in the upcoming October Budget.
He highlighted the adverse impact of costs such as the rise in employers’ National Insurance and business rates, stating, “Every rise…changes the calculation about whether to create another job.” He argued that the Budget should aim to reduce the tax burden on employment and encourage businesses to invest confidently in the UK.
Walker, who resigned from his advisory role before Burnham’s premiership, noted his awareness of the struggles posed by rising living costs but called for a pragmatic, long-term approach to economic recovery. He underscored the importance of making it cheaper to employ people and invest in growth to foster a more resilient economy.
As Burnham prepares for his inaugural Budget announcement on October 28, there is mounting skepticism among business leaders and economists regarding any proposed tax increases. Many warn that additional levies could jeopardize the recovery and exacerbate existing challenges faced by businesses.
Notably, former banker Jim O’Neill, an ally of Burnham, cautioned that it would be “stupid” to increase wealth taxes, reflecting broader concerns about the implications of elevating the tax burden, which Walker noted is already at its highest level since the Second World War. As Burnham pledges to be a “pro-business PM,” the upcoming Budget will serve as a critical litmus test of his commitment to easing operational burdens for UK businesses.
With pressures mounting for a balanced approach to economic policy, the implications of Walker’s recommendations could shape the trajectory of the UK’s recovery efforts as the government grapples with its economic strategy.
