Chancellor John Healey has pledged to reduce the cost of doing business in the UK as part of his upcoming budget, aiming to support entrepreneurs and strengthen ties between the Labour government and the business community. Speaking ahead of the fiscal event next week, Healey emphasized his commitment to cutting regulations and easing pressures on firms while maintaining a focus on the cost of living.

During a visit to Aberdeenshire, Healey acknowledged the multiple challenges faced by businesses, including changes to employment law, increased regulations, higher taxes, and disruptions in global supply chains. He conceded that some of these difficulties had resulted from recent government policies but argued that supporting profitable enterprises was essential for economic growth and innovation. “I want to be a chancellor who backs business in Britain making a profit,” he said, highlighting the vital role of entrepreneurs in challenging the status quo and fostering new ideas.

According to a senior Treasury official, the forthcoming budget is expected to include measures to eliminate regulatory burdens deemed excessive, described internally as “the sludge choking firms.” This is likely to involve abolishing certain reporting requirements, particularly for smaller businesses, to streamline operations and encourage growth.

Healey also indicated he would avoid increasing capital gains tax, citing concerns that such a move could deter investment. He framed his stance as a defense of the profit motive, stressing the importance of retaining successful start-ups in the UK and enabling them to reinvest profits into their own businesses.

While acknowledging the necessity of some previous tax increases—such as rises in national insurance contributions—to address economic damage attributed to Conservative policies, Healey expressed awareness of the heavy tax burden on companies. He referenced direct consultations with business leaders, noting the compounded effects of employment regulations, taxation, input costs, and supply chain issues on firms.

The chancellor also recognized concerns about the impact of rising minimum wages on younger workers, suggesting he is mindful of balancing worker protections with business sustainability.

The UK’s economic backdrop remains challenging, with government borrowing reaching its highest level this year and the national debt surpassing £3 trillion for the first time. Inflation increased to 3.5 percent in September, up from 3.1 percent in August, underscoring ongoing pressures on both households and businesses.

Healey’s upcoming budget is set to reflect an effort to navigate these complex economic conditions by reducing regulatory obstacles and fostering a more business-friendly environment under the Labour government.