Iceland Foods chief executive Lord Richard Walker has warned Chancellor John Healey that Britain "cannot keep taxing our way out of trouble" ahead of Wednesday's Budget. Writing in The Sun on Sunday, the former cost-of-living adviser to Sir Keir Starmer urged the Government to cut business levies, make hiring easier and give firms confidence to invest.

Make work pay, says Walker

Walker's message, as reported, was simple: "Make work pay, make hiring easier and give businesses the confidence to invest. Start with welfare." He called for National Insurance tax cuts on hiring workers under 25 and cash boosts for people who move off welfare into work, alongside tax cuts for businesses and entrepreneurs that invest and create jobs in Britain. He also urged a crackdown on the benefits bill, while saying people who genuinely cannot work must be protected, and that leaving people on benefits when they could work is not compassion.

A wider reform paper

The intervention builds on a paper Walker submitted to the think tank Progress, reported by City AM and Business Live, in which he called for "aggressive" tax reform. That paper proposed extending employers' National Insurance reliefs to all workers under 25, revisiting the 2024 tax rise worth about 25 billion pounds so it discourages hiring less, and introducing a graduated corporation tax structure for profits above 250,000 pounds, with stronger breaks for firms that reinvest in technology, skills and jobs. Healey is expected to deliver a steady Budget without large tax rises, with reports suggesting higher taxes on banks and a crackdown on online retailers, a frozen fuel duty and targeted energy bill relief for the poorest. Walker's warning adds to the pressure from business before the statement.

Sources: The Sun, Business Live / City AM