Don't make life harder for Britain's beleaguered businesses, Sainsbury's boss warns Chancellor

The boss of Sainsbury's has urged John Healey not to make life even harder for Britain's beleaguered firms.

Simon Roberts said the Chancellor must use next Wednesday's Budget to ease pressure rather than 'adding further taxes or further regulatory impacts to an industry that's already very heavily taxed'.

It came after Mr Healey told a newspaper that he will aim to deliver a boost to 'bloody-minded entrepreneurs' and 'back business in Britain making a profit'.

That is likely to include cutting back red tape for smaller companies. But many bosses are sceptical given the record of his predecessor Rachel Reeves, who imposed national insurance hikes on employers – despite a previous campaign to woo business.

Mr Roberts said that in meetings with the Government he has been 'very clear about the drivers of inflation and why it's so important we don't see any repeat of what we've seen in previous Budgets'.

He said the shock rise of NI within the 2024 Budget had increased costs in retail and hospitality – and the Government should 'make sure we don't do anything to further aggravate that situation'.

Andrew Murphy, boss of toy retailer The Entertainer, told the BBC Ms Reeves had courted businesses but made 'the biggest 180' and ultimately did 'the exact opposite' of what they had suggested.

And on the prospect of any possible help for business, he added: 'If it's just tinkering around the edges, then it is not going to make a decisive difference.'

Mr Murphy joined a chorus of other bosses – including those from Marks & Spencer and JD Sports – urging for a roll-back in the NI hikes. 

He said this would help his firm employ more people on eight and 12-hour contracts.

The rate has been raised from 13.8 per cent to 15 per cent and the threshold where employers start paying was cut to £5,000 from £9,100 – making more people on part-time contracts eligible.

Meanwhile, banks are concerned that a tax raid they are expected to face next week would have a damaging impact on their ability to lend to the wider economy.

Chris Hayward, policy chairman of the City of London Corporation, said the Square Mile would welcome Mr Healey's promised action to reduce business costs.

But he added: 'If he taxes banks, domestic banks will then lend less money to SMEs [small and medium enterprises]. 

'If you're not careful, you make one move to help small businesses but on the other hand, by taxing the banks, you damage their opportunity to borrow to grow.'

Shadow chancellor Andrew Griffith said of Mr Healey's comments: 'Business will be right to be thoroughly sceptical but the acid test would be repealing Labour's job-destroying Employment Rights Act.'

Separately, the British Chambers of Commerce (BCC) urged the Chancellor to reduce employment costs as figures showed 71 per cent are facing difficulties hiring staff.

The BCC's Patrick Milnes said: 'The Chancellor must use his statement to give firms breathing space. 

'Cutting employer national insurance contributions for under-25s would lower the cost of taking on young people.'

Meanwhile, the pub and restaurant trade bodies called on the Government 'to act to reduce our tax burden and remove barriers to support investment, growth and jobs in every postcode'.