Latest news with #BCC
Times
a day ago
- Business
- Times
Keir Starmer tells business leaders: ‘We've asked a lot of you'
Stepping on stage at the QEII Centre in Westminster on Thursday, the prime minister was full of thanks and acknowledgement of the effect the government's cost increases have had on businesses. Addressing the annual British Chambers of Commerce conference after an earlier breakfast meeting with bosses of more than a dozen companies, including Heathrow, Spire Healthcare and NatWest, Sir Keir Starmer signalled an attempt to rebuild strained relations. 'I want to begin by thanking you all because look, I fully acknowledge here that this year, as we've had to fix the foundations of our country, deal with the unprecedented mess that we inherited, we've asked a lot of you. I understand that,' he said. • 'Freeze taxes' says business lobby after national insurance hit After being wooed in the run-up to July's election victory, businesses have since hit out at the 'size and scale' of Labour's rise in employers' national insurance contributions, announced in October's budget and introduced in April. A new survey by the BCC, one of Britain's big five business lobby groups, released before its conference of mostly small and medium-sized businesses, found that a third said they have either made staff redundant or are planning to as a 'direct result' of the increase. Shevaun Haviland, the BCC's director general, in her conference speech, pressed the government to commit itself to freezing business taxes. In Starmer's charm offensive to the hundreds of delegates sitting before him in the vast conference room he gave no such commitment. But having unveiled the spending review for the parliament this month, as well as the industrial, infrastructure and, on Thursday, trade strategies, the prime minister said the government had shown a 'clear shift' to the 'next phase' of 'investing in the future of our country'. He added: 'And that means that we have to back you to the hilt. Because your members are the engines of growth in every community across the United Kingdom.' Monday's industrial strategy is underpinned by slashing the internationally uncompetitive costs of the economy's most intensive energy users and finally tackling the country's chronic skills shortage. The trade strategy includes a focus on pursuing smaller, faster trade deals with the likes of Brazil, Thailand and Kenya, rather than bigger free-trade agreements; closer ties with 'like-minded' nations such as Japan and Singapore; a £20 billion increase in the capacity of UK Export Finance, the government's credit agency for exporters, to £80 billion; and a consultation on anti-dumping measures for steel. One senior business leader, speaking privately on the sidelines of the conference after Starmer's speech, said the prime minister 'really is listening. So I think that is all positive.' But they added, talking of the broader government: 'They don't quite recognise the impact of the taxes and national insurance impact. It is significant. I mean you can't just absorb those. You have to do something about it. It is impacting jobs.' They said: 'Everybody in the room I talk to is making redundancies … so they're [ministers] going to have to do quite a lot of work on the productivity side of the balance sheet to offset what they did.' On stage, in a conversation with Haviland, Thomas Woldbye, the chief executive of Heathrow, welcomed the chancellor's green light this year for a third runway at the airport, a big infrastructure project that could boost Britain's productivity. Woldbye said Heathrow was 'central' in 'facilitating and delivering' the government's trade, industrial and infrastructure strategies. Heathrow is submitting its formal proposal to the government this summer and ministers are targeting planning permission this parliament. Woldbye said the chancellor's deadline was 'very, very ambitious' and required work on planning, as well as modernising the UK's airspace. Another significant concern of business is the government's contentious Employment Rights Bill. Starmer told the conference: 'I get the concerns,' but declined to signal further concessions as officials work with business on the reforms. The workers' rights changes will introduce day-one rights, better access to flexible working, and hand greater powers to trade unions. The prime minister said: 'Many people have recognised that a secure, protected workforce is good for business; drives up productivity.' Jonathan Reynolds, the business secretary, who also attended the conference and the earlier breakfast with bosses, told reporters on the sidelines that he was 'absolutely certain' the government could address the 'two principal concerns' of business — probation periods and access to zero-hour contracts — 'not through any change of policy, but through our existing approach'. • Workers' rights bill will stymie growth, not encourage it The senior business leader, who was speaking privately, said to capitalise on the productivity benefits of artificial intelligence, businesses needed to restructure the workforce and operations, yet the employment rights reforms 'as far as I can see, freezes everything … you're going to get into a very complex process'. Closing the conference, Kemi Badenoch, the leader of the opposition and former Conservative business secretary, reiterated that the Tories had lost the trust of business before last July's general election, but citing inflation, growth and unemployment, said Labour had since delivered 'change for the worse and it didn't have to happen'. Taking aim at the employment rights reforms — a 'huge problem' — and business taxes, Badenoch said: 'The rise in national insurance is killing jobs. It is making it impossible for businesses to grow.' Seeking to 'win back trust', she told delegates: 'We have to unleash the animal spirits of business.'
Yahoo
2 days ago
- Business
- Yahoo
Bailey contradicts Reeves's claim that economy has ‘turned a corner'
Andrew Bailey has poured cold water on the Chancellor's claim that Britain's economy has turned a corner, warning that growth is slowing as high taxes bite. The Governor of the Bank of England said the apparent growth spurt early this year was driven by temporary factors and was unlikely to be repeated. As a result, Britain's businesses must brace for a slowdown. 'We think the UK economy will grow at a more moderate pace over the coming quarters,' Mr Bailey told the annual conference of the British Chambers of Commerce (BCC). 'The unexpected strength in the first quarter was driven by strong outcomes for volatile components of GDP in the monthly figures for March.' Mr Bailey said growth was boosted by a stamp duty holiday that expired in March and a rush to export to the US before Donald Trump's tariffs kicked in. However, stamp duty has since risen along with other taxes, including Rachel Reeves's £25bn raid on employers' National Insurance contributions, and Mr Bailey said there were clear signs the economy was weakening as a result. The Governor added that he was 'beginning to hear a bit more evidence of adjustments through pay and employment' in response to higher National Insurance. He said there was 'softening of the labour market'. The comments are a blow to Ms Reeves, who claimed in May that Britain's economy was 'beginning to turn a corner' after official figures showed GDP grew by 0.7pc in the first three months of the year. The Chancellor has also repeatedly claimed that Labour has 'fixed the foundations' of the economy. Mr Bailey pointed out that the economy shrank by 0.3pc in April, which was 'consistent' with the idea that the growth spurt seen at the start of the year was only temporary. It echoes comments he made earlier in the week in which he warned that there was clear evidence of higher taxes hitting employment. The Governor added that economic growth was 'the only source of sustainable improvements to the standard of living'. Raising the growth rate of the UK economy was 'one of the most important challenges facing us as a society today', he said. The comments come after Shevaun Haviland, the BCC chief, pleaded with the Chancellor not to raise taxes again in the autumn, amid growing fears that Ms Reeves will be forced to come back for more. Ms Haviland said on Thursday: 'Taxing business is just counterproductive. The Chancellor needs to drive revenue from economic growth, not from taxation. Taxation kills business growth. 'We also go to her [Reeves] with ideas, with solutions, with opportunities and that's where we want to see her focus and for her taxing business further for the economy is going to have the opposite effect.' Sir Keir Starmer addressed business leaders at the start of the BCC conference, acknowledging that Labour's tax raid on companies had been painful. The Prime Minister said he had 'asked a lot' of businesses this year 'as we've had to fix the foundations of this economy'. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
2 days ago
- Business
- Daily Mail
Keir Starmer defends Labour's tax hikes and employment rights red tape as business chiefs warn burden must not be increased again
Keir Starmer defended Labour's tax hikes and employment rights red tape today as business chiefs warned the burden must not be increased again. The PM admitted the government had 'asked a lot' of firms as he addressed the British Chambers of Commerce conference in London. However, he argued that money from the monster national insurance increase had been needed to 'fix the foundations' of the country, by propping up the NHS and investing in skills and infrastructure. The head of the BCC has sent a stark message at the gathering that companies are already 'wading through treacle' thanks to government policy, and cutting back on hiring. There is alarm that more pain is looming, as Rachel Reeves desperately struggles to balance the books with the economy stalling and Labour MPs forcing U-turns on benefits cuts. The BCC said a third of small and medium-sized firms have made staff redundant or are thinking about job cuts as a direct result of the NICs increase. Some 13 per cent of more than 570 members surveyed had already cut jobs and 19 per cent were actively considering it. Speaking after Sir Keir, BCC director general Shevaun Haviland insisted the Chancellor cannot increase the burden again. 'There must be no further tax increases on business in the Autumn Budget,' she said. 'Business leaders are resilient, but they are also flexible. 'Some of our well thought-out business plans sometimes no longer meet our needs. When the facts change, so do we. 'And the Government needs to take the same approach. 'If the UK economy is subject to any further economic shock, such as a sustained spike in oil prices, then we need fiscal rules that are responsive and protect business investment.' In his speech, Sir Keir said firms were responsible for 'creating the jobs, the wealth, the tax receipts that means that we have the opportunity to change our country for the better'. 'I fully acknowledge, and I do acknowledge here, that this year, as we've had to fix the foundations of our country, deal with the unprecedented mess that we inherited, we have asked a lot of you,' he said. 'I understand that and I want to acknowledge that. 'It has made a huge difference. Because of it, the money has gone into the NHS and waiting lists are coming down. 'We have put investment into the skills of our young people, the new homes, new roads, new infrastructure that we're building, they are all vital for the long-term growth of our country. 'But none of that would have been possible without your contribution. And I say thank you. It's what I mean by partnership.'
Yahoo
2 days ago
- Business
- Yahoo
FTSE 100 LIVE: Stocks rise as US set to talk to Iran next week
The FTSE 100 (^FTSE) and European stocks rose on Thursday as the ceasefire between Iran and Israel continued to hold. 'We're going to talk to them next week,' US president Donald Trump said on Wednesday at a press conference during the NATO summit at The Hague. He did not give further details on the timing. 'We may sign an agreement. I don't know, to me, I don't think it's that necessary," he added. His comments came on day two of a ceasefire between Israel and Iran, which ended 12 days of a conflict that was threatening to escalate into a wider regional war and upend energy and oil markets. London's benchmark index (^FTSE) was 0.1% higher in early trade Germany's DAX (^GDAXI) rose 0.6% and the CAC (^FCHI) in Paris headed 0.4% into the green The pan-European STOXX 600 (^STOXX) was up 0.3% Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green. The pound was 0.6% higher against the US dollar (GBPUSD=X) at 1.3737 Follow along for live updates throughout the day: Businesses are urging the UK government to avoid imposing further taxes, warning it would undermine Keir Starmer and Rachel Reeves's mission to grow the economy. It comes as bosses are gathering at the QEII Conference Centre in central London today, for the British Chambers of Commerce's annual conference. 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 is set to warn that businesses were taken by surprise by the size and scale of the rise in National Insurance Contributions (NIC) in the last budget. Haviland is expected to say: The latest research from the Global Payroll Association (GPA) reveals that Manchester currently offers the best job availability of any major UK city for those seeking a fresh start, whilst London is one of the toughest markets to carve out a new career in, along with Edinburgh. The GPA analysed active job listings on multiple major job sites and compared these with estimated working populations aged 16 to 64 in 15 major UK cities to calculate the number of available jobs per 1,000 working-age residents. The analysis showed that Manchester stands out with an estimated 20.23 jobs per 1,000 working-age residents, nearly double the figure in many other cities. Following Manchester, cities such as Bristol and Bradford both show strong job markets with just over 11 jobs per 1,000 residents, while Newcastle and Nottingham also perform well with around 10 jobs per 1,000. Despite London having the highest total number of available jobs, at nearly 28,000 listings, its job availability relative to population stands at just 4.54 per 1,000 working residents, highlighting the strength of regional job markets. Other cities with notable job availability per 1,000 working-age residents include Liverpool (8.68), Leeds (7.95), Birmingham (7.29), Leicester (6.83), Brighton (6.67), Sheffield (6.04), Glasgow (5.60), Cardiff (4.99), and Edinburgh (4.07). Melanie Pizzey, CEO and founder of the Global Payroll Association, said: Shell has said it has no intention of making an offer to buy BP, quashing speculation that the two UK energy giants were in early talks over a possible takeover. The Wall Street Journal reported on Wednesday that talks between company representatives were active, with BP carefully considering the approach, citing sources familiar with the matter. Shell told investors on Thursday that no such discussions had taken place. The company said: '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.' It also confirmed that it had 'no intention of making an offer for BP'. A merger would be among the largest in the oil industry's history, and would end decades of speculation over a possible deal between two of the UK's biggest companies. Read more here Stocks in Asia were mixed overnight with the Nikkei (^N225) rising 1.7% on the day in Japan, leaving the index at a 4-month high, while the Hang Seng (^HSI) fell 0.7% in Hong Kong. The Shanghai Composite ( was 0.2% down by the end of the session. In South Korea, the Kospi (^KS11) fell 0.9% after hitting its highest level since September 2021 the previous day. Across the pond on Wall Street, the S&P 500 (^GSPC) ended flat at the close, and the tech-heavy Nasdaq (^IXIC) was 0.3% higher. The Dow Jones (^DJI) also lost 0.3%. It came as there was little data on Wednesday, although US new home sales fell by more than expected to an annualised rate of 623k in May (vs. 693k expected). This was their lowest level since October, and the monthly drop of 13.7% was the biggest monthly decline since June 2022. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. During the day ahead we have data releases in the US including the weekly initial jobless claims, pending home sales for May, preliminary durable goods orders for May, and the third estimate of Q1 GDP. Central bank speakers include ECB President Lagarde, Vice President de Guindos, and the ECB's Schnabel, BoE Governor Bailey, and the Fed's Barkin, Daly, Hammack and Barr. Finally, an EU leaders' summit will begin in Brussels. Here's a quick look at what's on the agenda: 7am: Trading updates: Moonpig, CakeBox, Time Finance 9.15am: 'Senior cabinet minister' addresses BCC's annual conference. 9.45am: Shevaun Haviland, director general of the BCC, addresses its conference 12pm: Andrew Bailey, governor of the Bank of England, addresses BCC annual conference 1.30pm: Latest estimate of US GDP for Q1 2025 1.30pm: US Initial Jobs Claims, Continuing Claims 3.25pm: Kemi Badenoch MP, Leader Of The Opposition, addresses BCC annual conferenceBusinesses are urging the UK government to avoid imposing further taxes, warning it would undermine Keir Starmer and Rachel Reeves's mission to grow the economy. It comes as bosses are gathering at the QEII Conference Centre in central London today, for the British Chambers of Commerce's annual conference. 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 is set to warn that businesses were taken by surprise by the size and scale of the rise in National Insurance Contributions (NIC) in the last budget. Haviland is expected to say: The latest research from the Global Payroll Association (GPA) reveals that Manchester currently offers the best job availability of any major UK city for those seeking a fresh start, whilst London is one of the toughest markets to carve out a new career in, along with Edinburgh. The GPA analysed active job listings on multiple major job sites and compared these with estimated working populations aged 16 to 64 in 15 major UK cities to calculate the number of available jobs per 1,000 working-age residents. The analysis showed that Manchester stands out with an estimated 20.23 jobs per 1,000 working-age residents, nearly double the figure in many other cities. Following Manchester, cities such as Bristol and Bradford both show strong job markets with just over 11 jobs per 1,000 residents, while Newcastle and Nottingham also perform well with around 10 jobs per 1,000. Despite London having the highest total number of available jobs, at nearly 28,000 listings, its job availability relative to population stands at just 4.54 per 1,000 working residents, highlighting the strength of regional job markets. Other cities with notable job availability per 1,000 working-age residents include Liverpool (8.68), Leeds (7.95), Birmingham (7.29), Leicester (6.83), Brighton (6.67), Sheffield (6.04), Glasgow (5.60), Cardiff (4.99), and Edinburgh (4.07). Melanie Pizzey, CEO and founder of the Global Payroll Association, said: Shell has said it has no intention of making an offer to buy BP, quashing speculation that the two UK energy giants were in early talks over a possible takeover. The Wall Street Journal reported on Wednesday that talks between company representatives were active, with BP carefully considering the approach, citing sources familiar with the matter. Shell told investors on Thursday that no such discussions had taken place. The company said: '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.' It also confirmed that it had 'no intention of making an offer for BP'. A merger would be among the largest in the oil industry's history, and would end decades of speculation over a possible deal between two of the UK's biggest companies. Read more here Stocks in Asia were mixed overnight with the Nikkei (^N225) rising 1.7% on the day in Japan, leaving the index at a 4-month high, while the Hang Seng (^HSI) fell 0.7% in Hong Kong. The Shanghai Composite ( was 0.2% down by the end of the session. In South Korea, the Kospi (^KS11) fell 0.9% after hitting its highest level since September 2021 the previous day. Across the pond on Wall Street, the S&P 500 (^GSPC) ended flat at the close, and the tech-heavy Nasdaq (^IXIC) was 0.3% higher. The Dow Jones (^DJI) also lost 0.3%. It came as there was little data on Wednesday, although US new home sales fell by more than expected to an annualised rate of 623k in May (vs. 693k expected). This was their lowest level since October, and the monthly drop of 13.7% was the biggest monthly decline since June 2022. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. During the day ahead we have data releases in the US including the weekly initial jobless claims, pending home sales for May, preliminary durable goods orders for May, and the third estimate of Q1 GDP. Central bank speakers include ECB President Lagarde, Vice President de Guindos, and the ECB's Schnabel, BoE Governor Bailey, and the Fed's Barkin, Daly, Hammack and Barr. Finally, an EU leaders' summit will begin in Brussels. Here's a quick look at what's on the agenda: 7am: Trading updates: Moonpig, CakeBox, Time Finance 9.15am: 'Senior cabinet minister' addresses BCC's annual conference. 9.45am: Shevaun Haviland, director general of the BCC, addresses its conference 12pm: Andrew Bailey, governor of the Bank of England, addresses BCC annual conference 1.30pm: Latest estimate of US GDP for Q1 2025 1.30pm: US Initial Jobs Claims, Continuing Claims 3.25pm: Kemi Badenoch MP, Leader Of The Opposition, addresses BCC annual conference
The Guardian
2 days ago
- Business
- The Guardian
UK businesses plead for no more tax rises; Shell says it has ‘no intention' of bidding for BP
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
