In the run-up to John Healey's first Budget, UK Chancellor and Prime Minister Andy Burnham have held private engagements with business leaders, who are pressing for a 'do no harm' approach on October 28.
Top of the private sector's wishlist is tackling public spending rather than raising revenues from business. Retail chiefs, including those from the British Retail Consortium and the Confederation of British Industry, want Healey to raise the national insurance threshold from £5,000 to £6,000 to ease hiring of young workers.
On business rates, Burnham is under pressure to deliver promised relief for small high street premises without hitting larger online retailers. The Treasury has backed away from a warehouse tax, but may still increase the rates surcharge on properties valued over £500,000, prompting calls for exemptions from retail, hospitality, and leisure sectors.
Banks are bracing for a surcharge increase from 3% to 8%, reversing Jeremy Hunt's 2023 cut. Lenders warn this could reduce business lending and raise mortgage costs. If taxes rise, banks seek softer capital buffer requirements from the Bank of England.
Source: Financial Times Companies · Summarized by HeadlinesBriefing