John Healey vows to be a chancellor ‘who backs business’ ahead of Budget

Chancellor John Healey says his Budget will consider reducing the cost of doing business and promises to back British firms and entrepreneurs. His comments come as Labour seeks to repair its relationship with business, while firms face pressure from the cost-of-living crisis and wider economic conditions.

Borrowing reached £24.5 billion last month, more than expected, while higher borrowing costs and weaker growth have reduced the Government’s fiscal headroom. Business leaders are urging the Chancellor to give firms room to invest; Rain Newton-Smith warned that raising the bank profits surcharge from 3% to 8% would harm competitiveness. She said financial services support more than 650,000 jobs outside London and contribute over £200 billion to the economy each year.