Business Leaders Urge Chancellor to Cut Taxes and Boost Youth Employment

Business leaders and a celebrity chef have urged the Chancellor to implement tax cuts aimed at stimulating job creation, particularly for young people, ahead of the upcoming budget.

Key demands include making it easier for businesses to create entry-level positions and rolling back the recent national insurance tax increase. The Confederation of British Industry (CBI) is advocating for firms to receive 'breathing space' to boost confidence and investment, addressing what they describe as a youth unemployment crisis. The CBI also called for action on industrial electricity bills and business rates.

Marks & Spencer boss Stuart Machin has criticized the previous two Budgets as a 'disaster,' highlighting the national insurance hike and urging the Chancellor to 'unravel' perceived mistakes. He suggested raising the national insurance threshold to £6,000 to lower hiring costs.

Hospitality Sector Calls for VAT Reduction

Separately, a campaign led by celebrity chef Tom Kerridge presented a petition to Downing Street advocating for a reduction in VAT for the hospitality sector from 20% to 10%. The petition, signed by over 400,000 individuals and backed by various trade groups, aims to alleviate financial pressures faced by businesses in the sector, including rising costs for energy, wages, and supplies.

Kerridge stated that a VAT cut would help convert business closures into openings and lost jobs into new ones. He pointed to European countries like Ireland, France, Italy, and Spain, which have lower VAT rates for hospitality.

Retailers Advocate for Business Rates Relief

The Retail Jobs Alliance (RJA), representing major retail employers, has joined forces with the shop workers' union Usdaw to call for physical stores to be excluded from potential business rate increases. The RJA warned that current cost pressures, including the rise in the national insurance contributions and minimum wage, could lead to approximately 90,000 job losses in the retail sector over the next five years. They have also expressed concern that any business rate relief for other sectors, such as pubs and music venues, might be funded by higher taxes on supermarkets.

Discussions between retail industry representatives and the Chancellor have already taken place, with bosses warning of the impact of further tax hikes on prices and employment.