A leading City trade body has warned Chancellor John Healey that implementing tax increases in the October Budget would lead the UK down a “road to ruin”. The British Chambers of Commerce (BCC) has called on the Chancellor to avoid “piling more taxes on firms” and instead reduce costs for businesses to stimulate economic growth.
Shevaun Haviland, the BCC’s director general, stated that the Chancellor should use his first budget to reduce the cost of doing business. She added that increasing taxes on firms would be the quickest way to undermine business confidence.
The industry body has outlined several demands, including assisting young people into employment, lowering business energy bills, and establishing a roadmap for tax reductions. The BCC suggests that cutting employment costs, specifically employer National Insurance Contributions (NICs) for all under-25-year-olds, could be funded by replacing the state pension triple lock.
The BCC has also advocated for a “targeted tax reduction package��� to alleviate pressures from energy costs and business rates. This includes the Treasury funding 75 per cent of the Renewables Obligation and lowering all business rates multipliers.