New prime minister and chancellor must ease burden on firms, says boss of BCC

The call comes two weeks before nominations open to replace Sir Keir Starmer

The next prime minister and chancellor must ease burdens on business in order for the UK economy to prosper, the boss of the British Chamber of Commerce will warn on Thursday.

Shevaun Haviland, director general of the BCC, is set to tell the business group’s global annual conference on June 25 that successive governments have “hobbled” business prospects over recent years.

Current Chancellor Rachel Reeves, who is widely predicted to be replaced if Andy Burnham becomes prime minister, is also due to speak at the conference.

The event comes around two weeks before nominations open to replace Sir Keir Starmer, with Mr Burnham currently the only candidate to have openly laid out their leadership ambitions.

Ms Haviland called on the next prime minister to resist further cost increases for firms.

Businesses have witnessed increases to national insurance contributions and the national minimum wage in recent budgets, as well as other taxes such as the packaging levy introduced earlier this year.

The BCC chief is set to say: “At a time of huge economic shocks and global headwinds, successive UK governments have chosen to pile more and more cost on companies. That is no way to run an economy.

“So, if we want to see growth – our political leaders must reduce the burdens on business. Taxing businesses more, would be a road to ruin.”

In her speech, she will also tell firms and industry leaders that improved business confidence is needed to help improve economic growth.

The Chancellor has made stronger economic growth a key ambition for the Government, but it is has come under pressure amid weak consumer confidence and global economic uncertainty.

Most recent data showed that the economy contracted by 0.1% in April amid signs the conflict in the Middle East was impacting some UK sectors.

She said: “The difficult truth is, whoever leads the UK, the primary challenge remains the same – delivering growth.

“Outside of the pandemic rebound, UK growth has flatlined year after year. And this economic malaise is nothing new or attributable to the policies of a single government. Despite all our strengths, we are failing to fulfil our potential.”