Andy Burnham, who is expected to become the next Prime Minisrer, will be told today that further taxes would be “a road to ruin” and the quickest way to destroy fragile confidence.
Shevaun Haviland, director-general of the British Chambers of Commerce, will use her address to its annual conference to criticise policy choices over the past decade for making “doing business even tougher”.
The conference will also be addressed by Chancellor Rachel Reeves, her shadow Sir Mel Stride, and Andy Haldane, the BCC president, who is tipped for an advisory role with Mr Burnham. Senior figures from Reform UK, the Lib Dems and Green Party will also speak.
Ms Haviland will say: “Despite?all?our strengths,?we are?failing to?fulfil?our potential. ?Businesses can feel it and?voters?can feel it?too.”
She adds: “A?cost of doing business?crisis?is?now?suppressing the very growth we want to see.?Over the last decade policy choices?have?made?the reality of?doing business even tougher.
“Government?imposed costs?on?your average SME?have risen by more than 70% in just 10 years.
“At a time of huge economic shocks and global headwinds,?successive UK governments have chosen to pile more and more cost on companies. That is no way to run an economy.
“So,?if?we want to see growth?-?our political leaders must reduce the burdens on business.?
“Taxing businesses?more, would be?a road to ruin.?The quickest way to destroy the fragile confidence?that?we have left. You must back businesses, not tax them, if you want to see growth.”
Mr Burnham’s choice of chancellor is being keenly watched, with Energy Secretary Ed Miliband, former Health Secretary Wes Streeting and current Home Secretary Shabana Mahmood in contention.
Ms Haviland will warn that “whoever?sits in No 10, or the Treasury” must understand that a lack of confidence is undermining the country’s ambition, ideas and talent, and therefore growth.
“Weak confidence reduces appetite for risk,?which reduces investment, which hampers?growth, which knocks confidence?further. And this?circular crisis of confidence is now shackling ambition. Blocking the actions needed to invest, innovate and trade.”
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Burnham squeezed by same constraints as Starmer
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