Iceland boss: Budget must show Labour is listening to business, not just managing decline

Lord Richard Walker, executive chairman of Iceland Foods, has urged the upcoming Budget to emphasize fostering a productivity revolution instead of merely managing decline. He believes this can be achieved through investment incentives, skills support, and lower employment costs, which would aid British businesses in driving economic growth.

Walker, who has worked across multiple sectors, was surprised by the stark difference between how decisions are made in the business world and within government. He criticized the current approach to industrial and economic policy in Britain, stating that it often involves circulating proposals between committees while competitors move ahead and customer expectations evolve.

Walker called for a more graduated corporation tax system, with lower rates for smaller businesses and entrepreneurs investing in growth, and a greater contribution from larger companies that aren't reinvesting their profits. He also advocated for aggressive tax breaks to reward additional investment in equipment, technology, skills, and jobs, which would drive productivity and global competitiveness.

Walker emphasized the need for greater freedom and stronger incentives for businesses to retrain their workforce as technology advances. He also stressed the importance of clearer timelines for infrastructure projects, measures to ensure work pays, and stable domestic energy policies over the next five or ten years. Walker believes that a credible five-year delivery plan, underpinned by a 10-year industrial strategy, is crucial.

He also criticized Labour's employer National Insurance charge, which he described as a significant consideration for companies when deciding to recruit. Walker urged Labour to be the party of jobs and to make hiring easier for businesses, especially those looking to create jobs for younger people and those entering the workforce.

He emphasized that people in work pay tax and get off benefits, and that the government simply cannot afford an endless cycle of spending without a credible plan to grow the economy. Walker expressed optimism that the government's recent actions show it is listening to business, and he called on the Chancellor to demonstrate a serious commitment to making Britain a more attractive place to invest, employ people, and grow a business.