Burnham pledges to tackle ‘cost of business’ as firms fear Budget tax raid

Andy Burnham pledged to address the "cost of business" as he aims to allay concerns that the private sector may face another heavy tax increase during the upcoming Budget. The Prime Minister stated that fiscal challenges are "challenging" but he is taking measures to alleviate pressure on both households and the private sector. Burnham emphasized his intention to make life easier for individuals and businesses during his first Budget as part of the new government.

He told the Financial Times that the Budget on October 28th was the "earliest date we realistically could have done." Burnham also sought to reassure investors and business owners that the Budget would not bring about a series of tax hikes. Research by the British Chambers of Commerce indicates that government policies over the past decade have increased business costs by approximately 70%.

The Prime Minister acknowledged the difficulties faced by the business environment and warned against interpreting his comments as implying additional burdens. Burnham hinted at a potential trade summit with the European Union in November, following its previous scheduling for July. He suggested that enhancing trade with the EU could contribute "percentage points" to the UK's growth rate.

Labour's 2024 election manifesto committed to not rejoining the customs union or single market, but Burnham emphasized that relations with the EU cannot be disregarded. Additionally, Burnham discussed his focus on enhancing public control over utilities like water and energy, aiming to create a favorable investment environment for companies.

The UK's fiscal headroom, estimated at £15bn by City economists, is lower at £8bn according to the Resolution Foundation. Energy companies in the North Sea are pressing for permits to drill for more oil and gas, with decisions expected in the coming days. Burnham endorsed the viewpoint of green-energy tycoon Dale Vince, who suggested that drilling in the North Sea might be viable if additional price controls are implemented.