With companies worried about rising costs and what taxes might look like next, the top two in government are sounding out business on Tuesday morning. Burnham is welcoming leading entrepreneurs and chief executives to Downing Street to talk about how the public and private sides can pull in the same direction to grow the economy. Healey has arranged a breakfast that gathers leaders from retail, hospitality and leisure - among them the Co-op supermarket group and J Sainsbury Plc - plus representatives of small businesses and town-centre commerce nationwide.
With his Oct/ 28 Budget approaching, the chancellor intends to use the session to address concerns over elevated operating expenses and recruitment challenges. He will ask for ideas on how the government could give breathing space to firms struggling with costs. Healey has stated that tackling companies' cost pressures is a priority. Last week he sat down with senior bank executives and noted he had not made a decision on imposing further taxes on the industry.
Pre-budget lobbying shapes what actually lands in the statement. Market Briefs covers fiscal policy free every weekday.
On Monday, British fashion tycoon Paul Smith told Sky News that when Rachel Reeves, Healey's predecessor, raised employers' National Insurance Contributions, his company had to find £1.4 million ($1.8 million) "overnight." His ask: "What we want is National insurance, please, to go back where it was if they can afford that and also tax free shopping. I mean, those are two very simple things that would help the economy across the country." At Labour's annual conference last month, executives from major companies told Bloomberg they worried the government wasn't engaging enough before the Budget. They said the direction outlined by Burnham and Healey pointed to support for smaller high-street businesses and state-backed investment in industrial sectors, while larger companies and financial services could face a heavier tax load.
Read this as the government taking temperature checks before the Oct/ 28 Budget on three fronts: business cost pressures, hiring strains and where tax policy might land for different sectors. If you own UK-exposed names, watch for signals on employer costs, tax treatment for larger companies and banks, and whether smaller high-street firms get fresh support. Those are the levers now on the table.
What business asks for now becomes policy in a few weeks. Join Market Briefs free and follow it.
