UK Chancellor John Healey targets EU industrial policy and domestic tax reforms

UK Chancellor John Healey is pursuing dual economic strategies aimed at strengthening international ties and revitalizing domestic commerce.

In Europe, Healey intends to urge EU finance ministers to include British manufacturers in the proposed ‘Made in Europe’ industrial policy, formally known as the Industrial Accelerator Act (IAA). The policy seeks to bolster European manufacturing and reduce reliance on external components, particularly from China. Healey aims to ensure the strategy fosters cooperation rather than creating barriers for UK businesses, such as the automotive sector, which exports approximately £15 billion annually to European markets.

Domestically, the Chancellor is preparing tax reforms for his first Budget to support small businesses and high streets. Proposed measures include overhauling the business rates system by potentially raising the Small Business Rates Relief threshold from £12,000 to £17,096 to account for inflation. The Treasury is also considering expanding transitional relief to mitigate the impact of property revaluations on commercial occupiers.