Key facts
- Lord Richard Walker, Iceland boss, has urged Chancellor John Healey to cut business taxes.
- Walker believes the government should prioritize reducing the cost of employment and investment.
- He suggested the upcoming October Budget should shift the tax burden away from jobs.
- Walker also criticized the triple lock pension system as unsustainable.
- Business groups and entrepreneurs have echoed calls for tax reductions and regulatory reform.
Lord Richard Walker, the boss of Iceland supermarket, has called on Chancellor John Healey to implement business tax cuts, arguing that current policies are hindering employment and growth. Walker, who previously served as the cost of living tsar under Sir Keir Starmer, stated that "warm words towards business won’t be enough" and urged the government to shift its focus from the cost of living to the "cost of getting Britain back to work."
In an opinion piece for The Sun on Sunday, Walker wrote that the government's primary objective should be to "make it cheaper to employ people, invest and grow." He contended that rising employer National Insurance contributions and business rates impose significant costs that deter job creation and investment. Walker suggested that the upcoming October Budget should aim to reduce the tax burden on jobs and productive investment.
Walker also voiced criticism of the "unsustainable" triple lock pension system. His intervention aligns with demands from various business groups, including the Confederation of British Industry, for tax relief. Specifically, he echoed calls for a reduction in National Insurance for employers, a tax hike implemented by Rachel Reeves in the 2024 Labour government budget, which raised approximately £25 billion. Employers have attributed the slowdown in the jobs market partly to this increased hiring cost.
Furthermore, the hospitality sector has advocated for a cut in Value Added Tax (VAT) and reforms to business rates to support high street businesses. Prominent entrepreneurs, such as John Caudwell and Lord Stuart Rose (former chairman of Asda and Marks & Spencer), have also expressed significant concerns about the cost of doing business, citing taxes and regulation as "serious impediments to growth and employment."