Don’t make life harder for Britain’s beleaguered businesses, Sainsbury’s boss warns Chancellor
Sainsbury’s chief executive Simon Roberts has urged Chancellor John Healey to avoid adding taxes or regulation to businesses in next week’s Budget, warning that firms are already under heavy pressure. Healey has promised to support profitable businesses and reduce red tape for smaller companies, but business leaders remain sceptical after the previous government raised employer National Insurance.
Roberts said the 2024 National Insurance changes added costs for retailers and hospitality businesses. The rate rose from 13.8 to 15 per cent, while the threshold for employer contributions fell from £9,100 to £5,000. Business groups have called for lower employment costs, and the British Chambers of Commerce says 71 per cent of firms are struggling to hire; City of London representatives also warn that taxing banks could limit lending to small businesses.
In short
- Sainsbury’s boss warns against adding new business costs.
- Employer National Insurance rose to 15 per cent.
- Business groups seek lower employment costs and more room to hire.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Businesses are facing higher employment costs and recruitment pressures, so adding taxes or regulation could make it harder to hire, invest and keep prices affordable. From this perspective, the Chancellor should prioritise predictable rules and lower costs, particularly for retailers and hospitality firms with large workforces, while avoiding measures that might constrain bank lending to smaller businesses.
The case against
The government may argue that businesses should contribute to public services and that carefully designed taxes or regulation can support wider economic and social goals. It can also contend that reducing red tape for smaller firms and supporting profitable businesses need not rule out new measures, especially if those measures are targeted, provide revenue for public investment or address costs borne by workers and the public.