Chancellor John Healey has revealed his plans for measures to support businesses in the Autumn Budget, acknowledging that firms are also suffering under the cost-of-living crisis alongside households.
In an interview with The Times, Mr Healey said he was "conscious" that businesses were under pressure and that his Budget would look at cutting "the cost of business".
Chancellor's commitment to businesses
Mr Healey said: "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 added that firms had been under "a lot of pressure" in recent years, saying: "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."
Budget constraints and borrowing
The new Chancellor is preparing to deliver his first Budget next week on Wednesday, October 28. He is seeking ways to raise revenue and keep the UK's budget deficit under control in the face of soaring government borrowing costs.
UK government borrowing rose by more than expected to £24.5 billion last month, underscoring the constraints in the public finances ahead of the Budget. Mr Healey is expected to increase bank taxes as higher borrowing costs weigh down on fiscal headroom.
Capital gains tax ruled out
Several prominent Labour voices have called in recent months for a rise in capital gains tax, which applies to the profit made from selling off assets like a house or shares. Cabinet ministers Wes Streeting and Louise Haigh both spoke of raising capital gains tax over the summer before Andy Burnham became Prime Minister.
However, Mr Healey has now ruled out the move after warnings it could end up costing the Government money if wealthy people leave the country or defer selling off assets, according to the Times. Mr Healey will deliver the Budget on Wednesday, October 22 to the House of Commons.
