Chancellor John Healey has pledged that his first Budget will focus on reducing the cost of doing business and supporting "bloody-minded entrepreneurs." Speaking ahead of his debut Budget on Wednesday 28 October, Healey said he was "conscious" of how companies are struggling with the cost-of-living crisis and tax rises, including some introduced by his predecessor Rachel Reeves during Sir Keir Starmer's premiership.
Backing Profit-Making Businesses
"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," the Cabinet chief told The Times.
Healey also said firms had been under "a lot of pressure" in recent years, pointing to changes in employment law, regulation, higher taxes, and global supply chains under strain due to world events, a likely reference to disruption caused by conflicts in the Middle East and elsewhere.
Tax Rises and Business Pressures
Rachel Reeves, when she was chancellor, increased the employer National Insurance contributions rate from 13.8% to 15%, a move that came into effect last year. Major employers have complained that this has added millions of pounds to their outgoings.
Healey continued: "And so when I talk about the cost of business, and recognising that in the same way as we're recognising the cost of living pressures, I'm conscious of that as I go into the budget for both businesses and households."
North Sea Gas Approval and Fiscal Constraints
He was speaking on Wednesday after the Labour Government announced it had approved drilling for gas at the Jackdaw site in the North Sea, off the coast of Aberdeen in Scotland. Energy Secretary Miatta Fahnbulleh said gas is expected to flow from the site into the domestic supply chain within weeks.
Healey faces economic pressures ahead of his Budget next week. UK government borrowing rose by more than expected to £24.5 billion last month, underscoring constraints on public finances. He is expected to increase bank taxes as higher borrowing costs weigh on fiscal headroom.
London business chiefs have urged the Chancellor to give the Mayor of London new powers to borrow against future revenue from transport and other schemes, arguing it could kick-start funding for developments such as the Bakerloo line extension and West London Orbital, creating more than 20,000 jobs and paving the way for 36,000 new homes.
