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Businesses urge Chancellor Healey to cut costs ahead of Budget

Britain's largest industry groups have called on Chancellor John Healey to reduce business costs to stimulate economic growth, submitting proposals to the Treasury.

  • Industry groups, including most of the 'B5', have focused proposals on reducing costs for firms.
  • The British Chambers of Commerce has called for the replacement of the triple lock pension.
  • Some representatives have asked the government for greater clarity on the costs of fiscal policy decisions.

The bosses of Britain's largest industry groups have urged Chancellor John Healey to reduce business costs to boost growth across the UK economy. Several business chiefs sent letters to the Treasury on Wednesday night, ahead of a deadline for engagement on the Budget, demanding relief from pressures on employers.

Most of the 'B5', which comprises five of the country's largest business groups, have centred their proposals on cost reduction for firms. This echoes Healey's promise to offer "breathing space" to businesses. In an unusual move, some representatives have also requested clearer information on the costs of certain fiscal policy decisions.

The British Chambers of Commerce notably called for the replacement of the triple lock pension, a policy that has drawn concern from economists regarding its cost to public finances. The Institute of Chartered Accountants in England and Wales urged the government to clarify its fiscal rules, amid concerns that Healey might seek "flexibility" within the stability rule, which mandates that day-to-day spending should match tax receipts by 2030.

Lobby groups from the retail, recruitment, and wider business sectors have pressed Healey to partially reverse Rachel Reeves' decision to increase employers' national insurance contributions by £25bn. Make UK and the Confederation of British Industry, both B5 bodies, have also urged the Chancellor to reduce electricity costs for producers.

Why this matters: The proposals from industry groups could influence the Chancellor's decisions in the upcoming Budget, potentially affecting business operations and the wider economy.

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