Burnham vows to ease business costs ahead of budget, warns of tax pressure

Andy Burnham told the Financial Times on Wednesday that his first budget will aim to make life easier for households and businesses. He said the government is "not coming into this role thinking how do we make life harder" and will look for ways to reduce the cost of living and the cost of business.

What happened

Burnham announced the budget will be delivered on 28 October, the earliest date he said was realistic. He tried to calm investors by stressing that he is "acutely conscious of how hard the operating environment is for businesses, big and small" and warned against reading his remarks as a signal that a series of tax hikes are imminent.

"People shouldn’t read into me giving that answer that all kinds of things are coming," he said.

His comments come as the British Chambers of Commerce warned that government policies over the past decade have pushed up business costs by roughly 70 per cent.

Why it matters

The budget will set the tone for the new administration’s economic strategy. Analysts estimate the fiscal headroom, the amount of money the Treasury can spend without raising taxes, at between £8bn and £15bn, a range narrowed by higher energy prices. A tighter budget could force companies to delay investment, while a more generous approach could boost confidence.

Burnham also hinted that a trade summit with the European Union is likely in November, reviving a promise that stronger EU trade could add percentage points to UK growth. Although Labour’s manifesto rules out re‑joining the customs union or single market, the prime minister said relations with the EU “cannot be ignored”.

Energy policy featured in the interview as well. Burnham backed comments from Labour donor Dale Vince, suggesting that additional North Sea drilling could make sense if price controls are tightened. Decisions on licences for the Jackdaw and Rosebank fields are expected within days.

What’s next

Parliament resumes next week, giving Burnham a two‑month window to shape the budget narrative. If the Treasury sticks to the lower end of the headroom estimate, we may see modest tax adjustments and targeted support for utilities such as water and energy, rather than wholesale nationalisation.

Businesses will be watching for any signals on the energy price cap, a topic explored in Burnham under fire as UK energy price cap rises 4%, and for the outcome of the upcoming EU trade talks, which could influence export markets and supply chains.

In the weeks after the budget, markets are likely to react to the balance between fiscal prudence and growth‑stimulating measures, setting the stage for the new government's economic credibility.