Corporate Britain is awaiting the 28 October budget, with many business leaders reserving judgment on Labour's approach until then. This comes as Labour seeks to repair relations with firms and reassure City bond traders at its annual conference in Liverpool.
At a private reception, Chancellor John Healey told executives the government would support firms facing rising costs and that his budget next month would have fiscal discipline at its core. He stated that he and Prime Minister Andy Burnham were "in lockstep" in their commitment to balance the books.
Rain Newton-Smith, CBI chief executive, noted that while Prime Minister Burnham appeared to be in listening mode, Labour faced difficult decisions in the upcoming budget. Shevaun Haviland, director general of the British Chambers of Commerce, welcomed the Chancellor's acknowledgement of private enterprise's importance but warned that companies still face severe headwinds from rising costs.
Some business leaders have welcomed individual initiatives, such as Burnham's tax cut for pubs and clubs, and a renewed sense of optimism from the new government. However, concerns remain about the possibility of tax rises in the budget, with one FTSE 250 retailer executive stating that businesses have absorbed "about as many tax rises as they can."