UK businesses urge Chancellor Healey to cut costs in upcoming Budget

Ahead of the UK Autumn Budget on 28 October, business leaders and industry bodies are urging Chancellor John Healey to implement measures that reduce operating costs and stimulate investment.

Major retail executives from companies including Tesco, Sainsbury’s, and Marks & Spencer met with Healey to warn that rising business rates, high energy costs, and employment taxes are driving inflation and threatening jobs. The British Retail Consortium has specifically called for raising the National Insurance contribution threshold from £5,000 to £6,000 to support entry-level and part-time hiring.

Other significant pressures include potential tax hikes on commercial office spaces in London and calls from unions to increase surcharges on bank profits. The Confederation of British Industry (CBI) and the British Chambers of Commerce have both requested ‘breathing space’ for firms, recommending cuts to business electricity costs and reforms to the business rates system to prevent a decline in productivity and investment.

Chancellor Healey has stated his intention to provide ‘breathing space’ for both consumers and businesses while adhering to strict fiscal rules and existing spending plans.