Ahead of the upcoming Budget on October 28, various business groups, including the British Chambers of Commerce (BCC), Confederation of British Industry (CBI), and Institute of Directors (IoD), are urging Chancellor John Healey to prioritize reducing the cost of doing business. They highlight that rising costs, uncertainty, and weak confidence are hindering investment intentions, which have fallen to their lowest point since the early 2020s.
The BCC has proposed a package of measures, including extending zero-rate employer National Insurance Contributions (NICs) for under-25s, funding 75% of the Renewables Obligation on business electricity bills, and reducing business rates multipliers. They estimate the NICs extension could cost $5.1 billion gross, with a narrower initial phase costing up to $144.4 million annually, partly funded by replacing the state pension triple lock. The business cost reduction package is estimated at $3.7 billion annually ($2.9 billion for energy relief and $820 million for business rates reduction).
The CBI warns that employer NICs, which increased significantly in 2024, rose to $123.1 billion in 2025-26, a 28% year-on-year increase, making it the largest source of business tax revenue. Both the CBI and IoD emphasize that increased taxes, energy bills, and regulatory costs lead to weaker investment, fewer jobs, and less wage growth. They advocate for a predictable tax environment, no further tax increases on businesses during this Parliament, and reforms to business rates.
Other proposals include stable five-year funding for Local Skills Improvement Plans ($33.2 million), an SME Skills Tax Credit worth 20% of accredited training expenditure (capped at $5,000 per employer, costing $350 million to $430 million annually), and improved export support ($18 million to $19 million annually). These groups assert that providing businesses with breathing space and a clear, stable policy path will encourage investment, recruitment, and exports, ultimately driving economic growth.
