BUSINESS LEADERS URGE GOVERNMENT TO CUT COSTS BEFORE BUDGET

The chief executive of the British Chambers of Commerce has called on the government to reduce business costs rather than rely on building economic resilience. Shevaun Haviland wrote that business owners were questioning whether the Labour government's approach would deliver growth, and urged policymakers to "stop adding to the cost stack and start taking layers away" ahead of the Autumn Budget. The BCC, which represents tens of thousands of firms across the country, recently highlighted a "cost of business crisis" affecting the UK economy.

The group's calculations suggest that government policies on the living wage, pension auto-enrolment and employment taxes have increased costs for mid-sized businesses by over 75 per cent in a decade. Separately, the construction and hospitality sectors have flagged mounting pressures. At least 1,836 pubs have closed since the start of 2025, according to Campaign for Real Ale figures. Alcohol duty rose by 3.66 per cent this year, whilst increases to the National Living Wage and National Insurance contributions are adding further pressure. Research by money.co.uk found that wet-led pubs make approximately 3 pence of profit for every pound spent at the bar—equivalent to 16 pence on an average pint costing £5.17.

Industry figures have warned that proposed planning reforms to protect pubs from conversion to flats or offices will not address the underlying cost pressures forcing closures. Allen Simpson, chief executive of UKHospitality, called on the government to reverse previous policy decisions rather than implement building-level protections. Chancellor John Healey faces pressure to balance cost-of-living relief for households against spending commitments including a commitment to raise defence spending to three per cent of GDP by 2030. Capital Economics estimated that approximately £25 billion could be raised in additional government revenue this year.