UK businesses plead for no more tax rises; Shell says it has ‘no intention' of bidding for BP

The Guardian

2 days ago

Update:
Date:
Title: Introduction: UK businesses plead for no more tax rises
Content: Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
UK businesses are urging the government to resist any temptation to impose further taxes on them, warning it would undermine Keir Starmer and Rachel Reeves's mission to grow the economy.
Business leaders are gathering at the QEII Conference Centre in central London today, for the British Chambers of Commerce's annual conference, where memories of last autumn's budget tax hikes are still fresh.
Shevaun Haviland, the BCC's director general, will declare that if the government is serious about growth, then it cannot tax business any further.
She'll warn that businesses were taken by surprise by the size and scale of the rise in National Insurance Contributions in the last budget.
Haviland is expected to say:
'We were unprepared for the huge burden placed upon us, and it led many of us to rethink our growth plans. As a result, our business confidence measures have fallen to their lowest levels since 2022.
For the government to achieve its Growth Mission, people need to stay in work and businesses need to invest. As always, businesses soak it up and move forward, but they feel like they are wading through treacle.'
New research released by the BCC shows that the tax hike has hit hiring. It found that:
One third of firms (32%) said they have either made staff redundant or are planning to as a direct result of the NICs increase.
13% say they have already made staff redundant and 19% say they are actively considering redundancies
Business chiefs will also hear from Andrew Bailey, the governor of the Bank of England, and Kemi Badenoch, the Conservative Party leader.
The BCC's intervention comes as the government struggles to keep within its fiscal rules, with forecasts it may need to raise taxes in the autumn.
Ministers also face a significant rebellion the ​benefit cuts within its welfare bill. Abandoning the bill would blow a £5bn hole in Rachel Reeves' budget.
The government is also trying to woo businesses with a flurry of strategic plans. Earlier this week it unveiled its industrial strategy, and today it is presenting a trade strategy – which it says will protect vital UK industries and help businesses export.
9.15am BST: 'Senior cabinet minister' addresses BCC's annual conference.
9.45am BST: Shevaun Haviland, director general of the BCC, addresses its conference
12pm BST: Andrew Bailey, governor of the Bank of England, addresses BCC annual conference
1.30pm BST: Latest estimate of US GDP for Q1 2025
3.25pm Kemi Badenoch MP, Leader Of The Opposition, addresses BCC annual conference
Update:
Date: 2025-06-26T06:27:14.000Z
Title: Shell says it has 'no intention' of making offer for BP
Content: Energy giant Shell has declared it has 'no intention' of making an offer for rival BP, after takeover speculation swept the City last night.
In a statement to the City, Shell insists it has not approached BP, and that no talks have taken place.
It says:
In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.
Under the takeover code, this means Shell can't bid for BP for six months, unless it has the agreement of BP's board, or if another company bids for BP, or if BP asks for a code waiver, or if there is a material change of circumstances.
Shell explains:
This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result Shell will be bound by the restrictions set out in Rule 2.8 of the Code.
Last night, the Wall Street Journal reported that 'early-stage talks' were taking place between Shell and BP to agree a historic £60bn takeover to create one of the world's largest oil and gas companies.
BP has been the subject of takeover speculation as investors have been unconvinced by its turnaround plan, pushing its value down over the last year.
Update:
Date: 2025-06-26T06:26:05.000Z
Title: Introduction: UK businesses plead for no more tax rises
Content: Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
UK businesses are urging the government to resist any temptation to impose further taxes on them, warning it would undermine Keir Starmer and Rachel Reeves's mission to grow the economy.
Business leaders are gathering at the QEII Conference Centre in central London today, for the British Chambers of Commerce's annual conference, where memories of last autumn's budget tax hikes are still fresh.
Shevaun Haviland, the BCC's director general, will declare that if the government is serious about growth, then it cannot tax business any further.
She'll warn that businesses were taken by surprise by the size and scale of the rise in National Insurance Contributions in the last budget.
Haviland is expected to say:
'We were unprepared for the huge burden placed upon us, and it led many of us to rethink our growth plans. As a result, our business confidence measures have fallen to their lowest levels since 2022.
For the government to achieve its Growth Mission, people need to stay in work and businesses need to invest. As always, businesses soak it up and move forward, but they feel like they are wading through treacle.'
New research released by the BCC shows that the tax hike has hit hiring. It found that:
One third of firms (32%) said they have either made staff redundant or are planning to as a direct result of the NICs increase.
13% say they have already made staff redundant and 19% say they are actively considering redundancies
Business chiefs will also hear from Andrew Bailey, the governor of the Bank of England, and Kemi Badenoch, the Conservative Party leader.
The BCC's intervention comes as the government struggles to keep within its fiscal rules, with forecasts it may need to raise taxes in the autumn.
Ministers also face a significant rebellion the ​benefit cuts within its welfare bill. Abandoning the bill would blow a £5bn hole in Rachel Reeves' budget.
The government is also trying to woo businesses with a flurry of strategic plans. Earlier this week it unveiled its industrial strategy, and today it is presenting a trade strategy – which it says will protect vital UK industries and help businesses export.
9.15am BST: 'Senior cabinet minister' addresses BCC's annual conference.
9.45am BST: Shevaun Haviland, director general of the BCC, addresses its conference
12pm BST: Andrew Bailey, governor of the Bank of England, addresses BCC annual conference
1.30pm BST: Latest estimate of US GDP for Q1 2025
3.25pm Kemi Badenoch MP, Leader Of The Opposition, addresses BCC annual conference