The Confederation of British Industry (CBI) has pressed Chancellor John Healey to implement cuts to employment taxes and energy bills in his inaugural Budget on 28 October. The business lobby group warned that further tax increases could hinder investment and job creation, urging the Chancellor to provide firms with "breathing space" amidst rising costs and uncertainty regarding government tax plans.
In its Budget submission, published on Thursday, the CBI proposed a £1,000 increase in the threshold at which employers begin paying National Insurance, moving it from £5,000 to £6,000. This measure aims to encourage businesses to hire more young workers. The group also called for the removal of policy costs from business electricity bills, reform of business rates, and simplification of the tax system.
CBI chief executive Rain Newton-Smith stated that adding more costs to companies would undermine Andy Burnham's growth ambitions, emphasising that "Business does not need another reason to wait – it needs a reason to invest". This intervention follows recent meetings between major retailers and Healey to discuss relief from rising employment costs.
Separately, research by Helm, a community group for start-ups, indicated that only four per cent of founders anticipate a positive Budget for businesses. Around 88 per cent of respondents to Helm's survey expressed concern about changes to taxes on capital or assets. Andreas Adamides, chief executive of Helm, suggested that rumours of capital gains tax increases could prevent founders from having the "certainty to plan ahead".