John Healey sets sights on supporting business ahead of Budget
John Healey has stated that his upcoming Budget will focus on reducing “the cost of business,” pledging to be a chancellor who champions entrepreneurs, reports BritPanorama.
In the lead-up to his first major fiscal event, Healey aims to restore the strained relationship between Labour and the business community, acknowledging the pressures companies face amid the ongoing cost-of-living crisis.
“I want to be a chancellor who backs business in Britain making a profit, and those entrepreneurs who, in the end, are the ones who challenge the status quo, come up with innovative ideas and are trying, some of them through sheer bloody-mindedness, to keep going through these sorts of pressures,” he told The Times.
Mr Healey emphasised that businesses have been under significant strain in recent years. He remarked, “When I talk about the cost of business, I’m conscious of that as I go into the budget for both businesses and households.”
UK government borrowing rose unexpectedly to £24.5 billion last month, heightening concerns about public finance constraints leading up to the Budget.
This increase comes amidst mounting pressure on Mr Healey to either raise taxes or implement spending cuts, particularly as soaring borrowing costs linked to global events, including the Iran war, have considerably restricted the government’s fiscal maneuverability.
In a recent statement, Rain Newton-Smith, chief executive of a major business group, urged Mr Healey to provide “business breathing space” in his inaugural Budget.
One potential measure under consideration is a hike in the surcharge on bank profits from 3 per cent to 8 per cent, effectively reversing a tax cut initiated by former chancellor Jeremy Hunt.
However, Ms Newton-Smith cautioned that increasing taxes on the UK’s financial sector could be counterproductive. “Our financial services may be centred in London but they support more than 650,000 jobs outside the capital,” she noted.
She added, “They add more than £200 billion to our economy every year. They are a great British success story. Our financial sector already faces a higher tax burden than other global centres. Adding to that would be an own goal for our competitiveness.”
Newton-Smith further argued that fostering growth necessitates support for struggling sectors rather than imposing additional demands on successful ones. She urged the chancellor to create conditions conducive to private sector investment.
“The Budget next week must focus on providing businesses with breathing space and supporting wealth creation. This space enables businesses to invest, hire, innovate, and make decisions driving growth in every postcode,” she concluded.
As the clock ticks down to the Budget, the discourse surrounding its implications on business health continues to intensify, revealing the delicate balancing act Healey must perform.
