Iceland chief urges new government to prioritise business tax cuts

Lord Richard Walker, the chief executive of Iceland, has called on the new Labour government to reduce the tax burden on businesses and shift its policy focus away from cost of living measures. Walker, who supported the party in the recent general election, argued that the administration must stop concentrating on household costs and instead concentrate on reducing the expenses associated with employing staff and expanding operations. He stated that verbal support for the private sector is insufficient and that the primary objective must be to make it more affordable to hire workers, invest capital and grow the economy.

In a contribution to The Sun on Sunday, Walker specifically urged the government to address rising employer National Insurance contributions and punitive business rates bills. He contended that every additional cost imposed by Whitehall alters the calculation for creating new jobs. Consequently, he suggested that the upcoming October Budget should begin moving the tax burden away from employment and productive investment. This intervention marks the latest in a series of criticisms directed at UK policymaking by prominent business figures. Prior to the current leadership changes, Walker had publicly described Ed Miliband as a potential disaster for the role of Chancellor, citing what he viewed as an overly ideological approach to energy policy.

Walker’s comments align with broader demands from the Confederation of British Industry and other business groups for a reduction in employer National Insurance. This tax was increased by Rachel Reeves in the first Labour budget, raising approximately £25bn, although employers have linked the added hiring costs to a significant slowdown in the jobs market. In the House of Lords, Walker also criticised the triple lock pension mechanism as unsustainable. The hospitality sector has separately pushed for VAT cuts and business rates reform to support high streets. Additionally, leading entrepreneurs and business leaders, including John Caudwell and Lord Stuart Rose, have written to the government to halt the gradual increase in taxes on businesses and households. Rose, former chairman of Asda and Marks and Spencer, expressed deep concern over the rising cost of doing business, describing taxes and regulation as serious impediments to growth and employment.