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CBI warns Healey business costs are hitting investment

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CBI warns Healey business costs are hitting investment

Rising costs are damaging business investment and undermining the government’s efforts to raise living standards, the CBI has warned the chancellor, John Healey, ahead of his first major economic speech and the budget on 28 October.

In a 75-page report drawing on cross-sector surveys and evidence from trade associations, the industry confederation said businesses paid almost £345bn in taxes in 2025-26. That was 12.7 per cent higher than the previous year and represented 31.3 per cent of all UK tax receipts.

Employer national insurance contributions, which were increased in the Labour government’s first budget in 2024, rose to £123.1bn in 2025-26, according to the CBI’s analysis of business tax contributions. That was a 28 per cent increase year-on-year and meant the levy overtook corporation tax as the largest single source of business tax revenue.

The report also found that UK non-domestic electricity prices were about 45 per cent above the median of G7 countries in 2023 and 2024.

The CBI called on the government’s new cost of living taskforce to prioritise cutting business costs. Rain Newton-Smith, the CBI’s chief executive, said Andy Burnham was right to put the cost of living at the heart of his new government but warned that “business costs are kitchen-table costs too”.

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“When firms are forced to absorb higher taxes, energy bills and regulatory costs, the consequences are weaker investment, fewer jobs and less scope to raise wages,” she said.

“Business is the economic engine that powers better public services, creates jobs and raises living standards, the very things we need to revitalise our communities and help them prosper.”

The report identified four barriers holding back investment: labour and energy costs; fragmented rules that raise compliance costs; unnecessary regulatory friction with the EU; and tax complexity. It called for measures in the budget to ease what it described as the most significant pressures, from employment costs, energy bills and business rates.

The CBI’s members include some of Britain’s largest employers, among them Tesco, Centrica and Lloyds Banking Group, as well as trade associations covering retail and hospitality, food and drink manufacturing, construction and energy.

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Healey has said he is as concerned about the cost of business as about the cost of living. In his first address to the House of Commons as prime minister, Burnham pledged to “bring back hope” and said life was “too expensive and too hard for too many”, but he declined to say whether taxes would rise in the budget. He also said his administration would be “grounded in fiscal responsibility”, as the cost of government borrowing reached its highest level in almost two decades.

The British Chambers of Commerce made a similar case in its own submission to the chancellor. Its research found that domestic policies have increased the costs facing a typical small or medium-sized business by 70 per cent over the past decade.

The BCC proposed cutting national insurance contributions for under-25s, reducing energy taxes and business rates, and providing greater support for exporters. It said the measures could be partly funded by replacing the triple lock on pensions, and urged Healey to “back business, cut costs and deliver growth”.

Shevaun Haviland, the BCC’s director-general, said: “We know the government is in a fiscal bind and its choices are limited. But support for business is not just money out the door, it generates vital economic returns. Easing cost pressures will give firms breathing space to create jobs, investment and growth. Right now, too many businesses are being held back by ever increasing bills.”

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The two submissions follow earlier CBI warnings against further tax rises on business under the previous chancellor, Rachel Reeves.

The government was approached for comment.


Jamie Young

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

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Prince William, Kate Won’t Get Involved In Harry And Meghan ‘Circus,’ Royal Insiders Say This Autumn

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Kate, as she is widely known, is seen as bringing the common touch to the ancient institution

LONDON — Prince William and Princess Kate are entering a pivotal new season determined not to let Prince Harry and Meghan Markle’s return to Britain distract them from their own path forward, according to royal insiders, even as the Sussexes’ presence in the country promises to complicate the family’s public calendar in the months ahead.

The comments come as William and Kate say a poignant farewell to Prince George this week, marking his first day at Eton College, the prestigious Berkshire boarding school William himself attended as a teenager. The milestone arrives alongside what royal sources describe as a broader shift for the couple, who appear more united than ever as they resume official duties following their summer break, and just weeks after Harry and Meghan’s unexpected return to the U.K.

Robert Jobson, author of “The Windsor Legacy,” told Hello! that William and Kate remain firmly focused on their long-term trajectory rather than reacting to developments involving the Sussexes.

“They are on a clear path and they’re thinking about what their future is going to be,” Jobson said. “They’re focused on the kids and their projects. They are on a steady path which leads to the ultimate job, the top job. Now they’re next in line, they’re facing what their position will be, and that will be essentially to prepare the reign that they want and how they want to do it. William will take the lead, but it’s going to be a team effort.”

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Jobson pointed to the couple’s public unity as evidence of their strengthened partnership.

“I think they’re certainly stronger as a couple, but also as a family unit,” Jobson said. “You only have to look at them in public; they are very much a united couple and they’re very much doing their job. They really haven’t put a foot wrong. The way that Catherine has come back into the public eye was perfectly handled. They’ve got their image right, they’ve got their engagement at the level they want and they’re spending enough time with their kids.”

Addressing the Sussexes’ return directly, Jobson said he does not expect it to change William and Kate’s approach.

“I don’t think that, because Harry and Meghan are here making a bit of noise, that’s going to necessarily make them do anything,” Jobson said. “They’ll probably think, well, we’ve been down this road before; it creates a circus and we’re not going to get involved.”

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Still, Harry and Meghan’s presence will be difficult to entirely avoid. The couple, believed to be living in the Cotswolds, flew into Birmingham last month in time for their children, Prince Archie, 7, and Princess Lilibet, 5, to begin school. William and Kate have their own busy autumn schedule of engagements planned, including William’s continued work on homelessness and mental health and Kate’s focus on young children and families, while Harry is expected to appear in London later this month at the WellChild Awards, an annual charity event for seriously ill children of which he remains patron.

Hello! royal editor Emily Nash said Meghan’s specific plans remain the more uncertain variable in the equation.

“What really fascinates me is what Meghan is going to do,” Nash said. “She’s essentially a private citizen here in the UK. Will she pop up with or for Harry? If she does, does that make it look more like they’re sort of imitating royal engagements? I think this could become a bit of a problem for them.”

Nash also flagged conflicting reports about Meghan’s potential return to acting, after British actor Theo James dismissed rumors that Meghan would join the third season of the Netflix series “The Gentlemen,” in which he stars, calling the speculation “hot air.”

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“The other thing that I found fascinating was Theo James saying that all the rumours around her starring in The Gentlemen are hot air,” Nash said. “That whole sort of PR bombshell about her returning to acting very specifically linked her to that production in particular, and now, people at the heart of it are saying it’s not right. What is going on there?”

Based on her own sourcing, Nash said she expects Meghan to largely continue her existing pattern of activity.

“From the people I’ve been speaking to, I think Meghan’s plan is to carry on doing what she’s been doing,” Nash said. “I’m sure they’re working on some of the things they were doing with Archewell Philanthropies — the work she was doing around online harm, for example, I’m sure we’ll see more of that kind of thing. But do they really want to return to the kind of engagements that they turned their back on? And if they do, how are people going to react to it?”

Meghan is also continuing to build her lifestyle brand, As Ever, and remains patron of Smart Works, a U.K.-wide charity offering coaching and clothing to unemployed women and those on zero-hours contracts. Smart Works told Hello! it is “very excited to welcome the Duchess and her family back to the UK.”

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One date likely to underscore the ongoing divisions within the family is the National Service of Remembrance on Nov. 8, when senior royals traditionally gather at the Cenotaph in central London. Having stepped down as working royals in 2020, Harry and Meghan will not be invited to join King Charles and other relatives at the official service, though Harry may choose to mark the occasion elsewhere, as he has done in Los Angeles in past years.

Jobson said any separate observance by Harry would risk highlighting the rift rather than easing it.

“That’s a problem, because if Harry goes somewhere in Oxford and does it, it’s going to look very odd, because it’s going to be an alternative moment,” Jobson said. “As a veteran, he will probably want to do that, so unless they invite them into the fold, which I don’t think they will at this moment in time, it creates an alternative which makes them look divided. You’ve got two conflicting households on the same patch, and that can’t possibly work. I think something has to give along the way. It’s whether they invite Harry back inside, and if that’s the case, then a lot of people won’t be very happy.”

Questions also remain over whether Harry and Meghan will be invited to Kate’s annual Together at Christmas carol concert at Westminster Abbey, or to join the wider family for festive celebrations at Sandringham.

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For William and Kate, Jobson said the pair are more likely to stay focused on their own upcoming milestones, including a potential state dinner next month for the Sultan of Oman’s visit to the U.K., hosted by the King and Queen. There is also renewed talk of Kate rejoining William for international travel, with speculation she could accompany him to Mumbai in November for the Earthshot Prize Summit and Awards, which would mark their first major joint overseas trip since visiting the Caribbean in 2022, and Kate’s first appearance at one of William’s environmental events since Boston that same year.

“I think if she’s well enough to go, she will go,” Jobson said. “All the indications are that she probably will. It’s about time that she did.”

Jobson said he ultimately expects William and Kate to rise above any distraction posed by the Sussexes’ return.

“I think they’re going to rise above all this,” Jobson said. “I don’t think they’re going to be involved in a tit for tat. Harry has turned up and put the ball back in their court, but it doesn’t necessarily mean that they’re going to play.”

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Retired FBI Agent Theorizes Nancy Guthrie Died Days After Kidnapping-For-Ransom Plot Went Wrong

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Savannah Guthrie & Nancy Guthrie

TUCSON, Ariz. — A retired FBI agent has laid out a new theory about the disappearance of Nancy Guthrie, suggesting the 84-year-old mother of “Today” co-anchor Savannah Guthrie was taken in a kidnapping-for-ransom plot that unraveled within days, possibly ending in her death from natural causes.

Frank Storey outlined the theory during an appearance on “True Crime With Jen Coffindaffer,” a podcast hosted by fellow retired FBI special agent Jennifer Coffindaffer, on Sept. 2, seven months after Guthrie vanished from her Catalina Foothills home near Tucson. Storey suggested Guthrie may have suffered a fatal heart attack a day or two after being seized, though he stressed his account remains speculation rather than a confirmed finding, and investigators have not endorsed it. No suspects have been named, and authorities have not said whether Guthrie is alive or dead.

Storey pushed back against suggestions that the case has gone cold, arguing that senior bureau agents remain actively assigned to it and that a resolution is likely given his belief that more than one person was involved in the abduction. He said he expects the case to eventually break through the plea-bargaining system, predicting that if one of the participants is later arrested on an unrelated charge carrying a lengthy sentence, that person could offer investigators information about Guthrie in exchange for leniency.

“Somebody always talks,” Storey told Coffindaffer.

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Storey is one of several former agents who have offered public theories about the case in recent months, though none of them is directly involved in the active investigation.

The known timeline of Guthrie’s disappearance remains short and largely unresolved. She was last seen alive on the evening of Jan. 31, 2026, at her Catalina Foothills home, after relatives dropped her off. The following morning, a friend contacted Guthrie’s family when she failed to arrive at church; relatives reached the property before noon and called the Pima County Sheriff’s Department.

Sheriff Chris Nanos moved quickly to treat the case as a crime, saying publicly that he believed Guthrie had been abducted and later telling NBC News she was taken from the home against her will. Investigators found drops of blood outside the front door that were subsequently confirmed to be hers.

Footage from a home security system initially yielded nothing, with Nanos saying the system may have been set to automatically delete recordings, leaving detectives to attempt a forensic recovery. Forensic evidence has since become both the center of the investigation and a source of friction among those involved. A mixed DNA sample recovered from the house has not been matched to anyone, and hair analysis failed to identify a suspect, with the sheriff saying several laboratories are working to separate the material found at the scene. FBI Director Kash Patel publicly criticized Nanos for sending samples to a private laboratory rather than the bureau’s own facility, a decision the sheriff has defended as an operational choice. Two men have been detained and questioned at separate points in the investigation, and both were released without charge.

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Two ransom notes purporting to come from Guthrie’s kidnappers have also shaped the investigation. The sheriff’s department released both publicly on July 31 to mark six months since the disappearance. The first note was sent to Tucson CBS affiliate KOLD-TV on Feb. 2, one day after Guthrie was reported missing, and was addressed directly to her daughter. It described Guthrie as “safe but scared” and demanded $4 million in bitcoin, a figure that rose to $6 million depending on the timing of payment. The writer set a deadline, stated Guthrie would be held no longer than seven days, warned she would be killed if the ransom did not arrive, and said there would be no negotiation. Nanos said the note contained specific details about the house and about what Guthrie had been wearing at the time of her disappearance.

The second note struck a markedly different tone, claiming Guthrie had died shortly after being taken. The FBI has said some of the numerous messages received throughout the investigation were unserious extortion attempts, while others remain under active review, and the bureau has not specified which category either published note falls into.

Nanos said the department chose to release the notes publicly in hopes that their specific wording or phrasing might jog someone’s memory. Anyone who recognizes distinctive language from the notes has been asked to contact the FBI at 1-800-CALL-FBI or the sheriff’s department’s tip line at 520-351-4900. A reward of $1.2 million remains available for information leading to Guthrie’s recovery, and Nanos has said he continues to expect an eventual arrest.

Seven months into the investigation, theories continue to outnumber confirmed facts, and the people who know what actually happened to Nancy Guthrie have yet to come forward.

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10 Things To Know About The History Of Labor Day, From Its Contested Founder To A Deadly 1894 Railroad Strike

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Labor Day Parade in New York's Union Square, 1882
Labor Day Parade in New York's Union Square, 1882
Labor Day Parade in New York’s Union Square, 1882

10 Things To Know About The History Of Labor Day, From Its Contested Founder To A Deadly 1894 Railroad Strike

As Americans mark another Labor Day, the holiday’s origins remain far more complicated, and far more dramatic, than the barbecues and end-of-summer sales that now define it for most people. Here are 10 things to know about the history behind the holiday honoring American workers.

  1. The first Labor Day was a New York City parade in 1882. On Sept. 5, 1882, an estimated 10,000 to 20,000 workers marched through Lower Manhattan in a parade organized by New York City’s Central Labor Union. One contemporary account described the scene vividly, noting that “the windows and roofs and even the lamp posts and awning frames were occupied by persons anxious to get a good view” of the procession of workingmen from various trades marching together under one banner.
  2. Two men are credited, and neither is fully certain. Union leader Peter J. McGuire, who founded the United Brotherhood of Carpenters in 1881 and later helped establish the American Federation of Labor, has long been called the “father of Labor Day.” McGuire reportedly proposed the idea to the Central Labor Union on May 12, 1882, suggesting the day “be celebrated by a street parade which would publicly show the strength and esprit de corps of the trade and labor organizations.” His gravestone and a statue in Pennsauken, New Jersey, both bear that title.
  3. A machinist named Matthew Maguire may be the real founder. Historical evidence uncovered by the New Jersey Historical Society suggests it was actually Matthew Maguire, a machinist and secretary of the Central Labor Union, who first proposed the holiday, not Peter McGuire. Following passage of the federal Labor Day law, the Paterson Morning Call published an opinion piece asserting that “the souvenir pen should go to Alderman Matthew Maguire of this city, who is the undisputed author of Labor Day as a holiday.” Both men attended that first 1882 parade.
  4. The September date has no deep symbolic meaning. Unlike many American holidays tied to specific historical events, Labor Day’s placement in early September was largely arbitrary. Peter McGuire said the date was chosen because it fell roughly halfway between Independence Day and Thanksgiving, giving workers a break during that stretch of the calendar without competing with any other major holiday.
  5. States adopted the holiday years before the federal government did. By 1885, Labor Day celebrations were being held in a number of states, with momentum building steadily throughout the mid-1880s as more state legislatures formally recognized the day, even though it would take another decade for Congress to establish it as a national holiday.
  6. A deadly railroad strike ultimately pushed Congress to act. In May 1894, the Pullman Palace Car Company, facing the effects of a severe economic depression, cut factory workers’ wages by roughly 25% while refusing to lower rents or prices at its company-owned town near Chicago. When a worker delegation presented grievances to company owner George Pullman, he had three committee members fired, prompting employees to walk off the job on May 11, 1894. The American Railway Union, led by Eugene V. Debs, soon joined with a nationwide boycott of trains carrying Pullman cars, crippling rail traffic across much of the country.
  7. Federal troops and deadly violence followed. U.S. Attorney General Richard Olney, a former railroad attorney, secured a federal injunction against the strike on July 2, 1894, and President Grover Cleveland deployed federal troops to Chicago the following day, citing the need to keep mail moving. The resulting clashes turned violent, with rioters destroying hundreds of railroad cars in South Chicago and National Guard troops firing into crowds, leaving an estimated 30 people dead. Debs was later jailed for six months for contempt of court, an experience that helped shape him into one of the country’s most prominent labor and socialist political figures in the years that followed.
  8. Cleveland signed the Labor Day law in the middle of that very crisis. On June 28, 1894, just days before dispatching federal troops to Chicago, Cleveland signed legislation making the first Monday in September a federal legal holiday. Historians have widely characterized the move as a conciliatory gesture toward the American labor movement at a moment of intense national unrest, an effort by Cleveland’s administration to repair its standing with working-class voters even as it simultaneously moved to crush the Pullman strike by force.
  9. Cleveland deliberately avoided the more radical May Day. Labor Day and May Day both emerged as holidays honoring workers, but Cleveland was reportedly uneasy with May Day’s socialist and international labor-movement origins, which trace back to the 1886 Haymarket affair in Chicago. By instead formalizing the more moderate, homegrown September date as the official U.S. holiday, Cleveland aligned the country with a distinctly American labor tradition rather than the more politically charged international observance embraced by many other nations.
  10. The holiday’s original law applied only to federal workers in Washington. The 1894 legislation initially designated the first Monday in September as a legal public holiday specifically within the District of Columbia, before the recognition was extended more broadly to federal employees nationwide. It took additional years for individual states to align their own labor laws and private employers to broadly adopt the holiday as the near-universal day off it represents for most American workers today.

Labor Day has since evolved considerably from its origins in 19th-century union organizing and deadly labor unrest. For most Americans today, the holiday marks the unofficial end of summer, a long weekend for travel, shopping and family gatherings, with many people unaware of the contested founders and violent national crisis that led directly to its creation as a federal holiday. Even so, the day’s underlying purpose, honoring the economic and social contributions of American workers, remains rooted in the same labor movement that first marched through the streets of Lower Manhattan more than 140 years ago.

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