Chancellor John Healey claimed he was as focused on cutting the ‘cost of business’ as the cost of living, and admitted many firms had been under ‘a lot of pressure’
The Chancellor has pledged that his first Budget will help slash the cost of doing business and be aimed at “bloody-minded entrepreneurs”.
John Healey claimed he was as focused on cutting the “cost of business” as the cost of living, and admitted many firms had been under “a lot of pressure”.
Speaking to The Times, Mr Healey claimed backing business would see companies put money back into their own business, delivering growth.
He said: “I want to be a chancellor who backs business in Britain making a profit, those entrepreneurs who in the end are the ones who challenge the status quo, come up with innovative ideas and are trying, some of them through sheer bloody-mindedness, to keep going through these sorts of pressures, which is what they’ve done.
“If you’re not making a profit, you’ve got nothing to put back into the business. And for the people who start up these businesses, the ones who really thrive and grow, they have to make a profit and they will be much more inclined to put it back into their own business. But we want it to grow here and stay here.
“And so when I talk about the cost of business, and recognising that in the same way as we’re recognising the cost of living pressures, I’m conscious of that as I go into the budget for both businesses and households.”
Mr Healey said he understood companies were struggling with the cost-of-living crisis and tax rises, but defended his predecessor Rachel Reeves, insisting her decisions were necessary to repair the damage caused by the Tories’ “dereliction of duty” on the economy.
Mr Healey, who resigned as Defence Secretary under Keir Starmer, also said by changing leader the country was now ready to give Labour a “new hearing”.
He said: “We have a very rare moment now. We’re in the middle of a parliament, the second half of a parliament, and we’ve got a chance of a new hearing. The country was ready for a change. Wherever you stood on the spectrum of the [Labour MPs], there was a recognition that we needed a change.”
It comes as Britain’s biggest trade union warned the Chancellor failing to hike capital gains or introduce a wealth tax at next week’s Budget would be a big mistake.
Andrea Egan, the General Secretary of Unison union, which represents over 1.3million workers, said the message from the public in recent polling was clear: “It’s time to tax the rich”.
While the Treasury is said to preparing to hike a levy on the big banks’ bumper profits, an increase in capital gains appears to have been ruled out at next week’s Budget.