Chancellor Healey’s Budget to Cut Business Costs and Taxes

Chancellor John Healey has announced plans for his first Budget, scheduled for October 28. The goal is to reduce the cost of doing business in the UK. Healey stressed the need to support "bloody-minded entrepreneurs" who face challenges from rising costs and tax increases set by his predecessor, Rachel Reeves. He said, "I want to be a chancellor who backs business in Britain making a profit." He highlighted the pressures businesses have faced due to changes in employment law and global supply chain issues.

Key Details

Healey's Budget is expected to tackle the financial strain on companies. Many have reported significant impacts from increased employer National Insurance contributions, which rose from 13.8% to 15% last year. Major employers have expressed concerns that these changes have added millions to their costs. The Chancellor acknowledged these pressures, stating, "When I talk about the cost of business, I’m conscious of that as I go into the budget for both businesses and households."

In addition to addressing overall business costs, businesses in Yorkshire are calling for a reduction in National Insurance contributions for under-25s. The West & North Yorkshire Chamber of Commerce argues that this measure could help ease the youth unemployment crisis. Aqila Choudhry, managing director of Love in Care, noted the ongoing struggles businesses face due to previous tax increases. She stressed the need for relief to ensure survival and growth.

Background

As Healey prepares for the Budget, he has not ruled out further tax increases. He cited the need to manage government borrowing costs, which are at historic highs. The Chancellor is also expected to consider increasing bank taxes as part of his fiscal strategy.

Based on reporting by: standard.co.uk