CBI urges Healey to cut payroll tax to unlock 40,000 youth jobs ahead of Budget on 28 October

From the Newshound archive · first published 15 October 2026.

Britain's biggest business lobby group has warned Chancellor John Healey that further tax rises risk strangling investment and jobs, urging him to raise the national insurance threshold from £5,000 to £6,000 as a first step to cutting youth unemployment. The CBI made its Budget submission on Thursday, days after bosses from Tesco, Marks & Spencer and Sainsbury's pressed Healey directly for relief from soaring employment costs. M&S chief Stuart Machin had already branded Labour's last two Budgets 'a disaster' and called on the Chancellor to 'start unravelling' Rachel Reeves' mistakes.

CBI chief Rain Newton-Smith warned: 'Business does not need another reason to wait — it needs a reason to invest.'

B&Q's boss threatened to PULL the chain's support for unemployed young people if taxes rise further in the Budget.

Celebrity chef Tom Kerridge led a petition to Downing Street calling for VAT on hospitality to be halved to 10 per cent.

Daily MailCut business taxes to tackle youth unemployment, Chancellor urged The TimesCut payroll tax to unlock 40,000 youth jobs, CBI urges City A.M.Healey told to cut employment taxes and energy bills to boost business The TimesRaising capital gains tax puts growth at risk, John Healey told iNewsCapital gains tax rise ‘ruled out’ – making these hikes more likely Financial TimesHealey’s Budget is a moment he must not miss LBCUK economy predicted to decline ahead of Budget iNewsI’m an economist – this is what capital gains tax increase will mean for your money Daily Mail NewsHealey must not 'screw up' UK's economic recovery with major Budget tax raid says former Burnham adviser The SunB&Q boss says chain will PULL support for jobless youth if taxes rise in Budget

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