Andy Haldane, president of the British Chambers of Commerce (BCC), has called on the Chancellor to use next week’s Budget to “do no further harm to business” and to begin reversing the rise in tax, regulatory and employment costs facing firms.
Speaking to business leaders from the North East Chamber of Commerce at the Glasshouse International Centre for Music in Gateshead, Mr Haldane said easing the cost of doing business must be the priority. He argued that this was the only durable way to bring down the cost of living and unlock stronger growth.
The speech was given this week at the BCC’s inaugural Growth Roadshow, held in partnership with the North East Chamber of Commerce. The event analysed the latest economic survey data from firms in the chamber network, nationally and locally.
According to the BCC, that data showed more firms expecting growth, but this had yet to translate into higher investment. Just 17 per cent of firms plan to increase investment, the lowest share since the pandemic.
John Healey will deliver the Budget on 28 October, his first as Chancellor, according to HM Treasury.
Mr Haldane, a former chief economist at the Bank of England who succeeded Baroness Lane-Fox as BCC president this year, said:
“The Chancellor should take the Hippocratic oath at this Budget: first, do no further harm to business. Firms have faced a relentless rise in tax, cost and regulatory pressures. Adding to that burden would weaken confidence, deter investment and put the brakes on growth.
“Better still, the Budget should start lowering the cost of doing business. That is the most sustainable route to easing the cost of living, raising productivity and giving companies the confidence to hire, invest and expand.”
Mr Haldane also set out what he described as reasons for optimism. He said the global economy had proven resilient to multiple geopolitical shocks, supported by firms that had rewired supply chains and kept trade and energy flowing. UK growth had been broader than expected, he said, with private-sector output and productivity showing signs of improvement.
“There are genuine reasons to be cheerful. Businesses have shown extraordinary agility through successive global shocks. The UK remains one of the most innovative economies in the world, AI adoption is gathering pace, and there are early signs that private-sector productivity is strengthening.
“Business balance sheets are also in relatively good shape. The opportunity now is to turn that resilience into momentum. If government provides stability, backs local growth and removes barriers rather than erecting new ones, it can unleash the animal spirits of firms in every sector and every part of the country.
“The sky genuinely is the limit, but the Budget must clear the runway.”
Mr Haldane also highlighted devolution, arguing that local leaders need meaningful powers to raise and spend money and to shape growth plans around the needs of their economies. He cited the North East’s strengths in clean energy, automotives, advanced manufacturing, AI and creative industries as evidence of the potential that can be unlocked when business, government and civic institutions co-operate.
John McCabe, chief executive of the North East Chamber of Commerce, said: “The message from the North East is clear: this region has the ambition, the expertise and the potential to accelerate the delivery of good growth. But this will not come from ambition alone. It requires the right conditions for firms to invest, recruit, innovate and expand.
“That’s what we’re asking of government in next week’s Budget: to create the conditions that will allow businesses to convert their ambition into investment, productivity, jobs and good growth.”
The speech follows a gathering of chamber leaders in Westminster on 14 October, when the BCC set out three measures it wants in the Budget: a cut in employer National Insurance contributions for under-25s, lower energy and business rates costs, and a consistent, locally delivered export support programme. BCC analysis published at the time said domestic policy-driven costs facing a typical SME had risen by more than 70 per cent over the past decade.
EY-Parthenon analysis published on Monday found that UK-listed companies issued 65 profit warnings between July and September, the highest quarterly total since the end of 2024.
