Keir Starmer defended Labour’s tax hikes and employment rights red tape today as business chiefs warned the burden must not be increased again.
The PM admitted the government had ‘asked a lot’ of firms as he addressed the British Chambers of Commerce conference in London.
However, he argued that money from the monster national insurance increase had been needed to ‘fix the foundations’ of the country, by propping up the NHS and investing in skills and infrastructure.
The head of the BCC has sent a stark message at the gathering that companies are already ‘wading through treacle’ thanks to government policy, and cutting back on hiring.
There is alarm that more pain is looming, as Rachel Reeves desperately struggles to balance the books with the economy stalling and Labour MPs forcing U-turns on benefits cuts.
Keir Starmer admitted the government had ‘asked a lot’ of firms as he addressed the British Chambers of Commerce conference in London
Speaking after Sir Keir, BCC director general Shevaun Haviland insisted the Chancellor cannot increase the burden again
The BCC said a third of small and medium-sized firms have made staff redundant or are thinking about job cuts as a direct result of the NICs increase.
Some 13 per cent of more than 570 members surveyed had already cut jobs and 19 per cent were actively considering it.
Speaking after Sir Keir, BCC director general Shevaun Haviland insisted the Chancellor cannot increase the burden again.
‘There must be no further tax increases on business in the Autumn Budget,’ she said.
‘Business leaders are resilient, but they are also flexible.
‘Some of our well thought-out business plans sometimes no longer meet our needs. When the facts change, so do we.
‘And the Government needs to take the same approach.
‘If the UK economy is subject to any further economic shock, such as a sustained spike in oil prices, then we need fiscal rules that are responsive and protect business investment.’
In his speech, Sir Keir said firms were responsible for ‘creating the jobs, the wealth, the tax receipts that means that we have the opportunity to change our country for the better’.
‘I fully acknowledge, and I do acknowledge here, that this year, as we’ve had to fix the foundations of our country, deal with the unprecedented mess that we inherited, we have asked a lot of you,’ he said.
There is alarm that more pain is looming, as Rachel Reeves (pictured right with Angela Rayner) desperately struggles to balance the books with the economy stalling and Labour MPs forcing U-turns on benefits cuts
‘I understand that and I want to acknowledge that.
‘It has made a huge difference. Because of it, the money has gone into the NHS and waiting lists are coming down.
‘We have put investment into the skills of our young people, the new homes, new roads, new infrastructure that we’re building, they are all vital for the long-term growth of our country.
‘But none of that would have been possible without your contribution. And I say thank you. It’s what I mean by partnership.’
