Ahead of Chancellor Rachel Reeves’ Spring Forecast Statement on 3 March, business groups, including the Confederation of British Industry (CBI) and the Federation of Small Businesses (FSB), have outlined their top priorities for UK firms, the economy and for combatting the cost-of-living crisis.
‘Critical delivery moment’
The CBI recently stated that the Spring Statement will prove to be ‘critical’ for the government in its ongoing growth mission.
Ben Jones, Senior Lead Economist at the CBI, said: ‘Businesses want to see government take action to speed up relief for high industrial energy costs, collaborate with firms to find appropriate landing zones for the Employment Rights Act and make real progress on tax simplification to ease the cost of doing business.’
Focus needed to restore confidence levels
The FSB warned that the government must do more to help restore confidence levels amongst small businesses. According to the business group, cost tensions on small firms and the self-employed have ‘built and built’, with late payments only adding to their concerns. Combined with margin pressures set to hit in April, including higher business rates bills, increases to energy bills and a higher National Living Wage (NLW), small firms face ‘real danger’.
Tina McKenzie, Policy Chair at the FSB, said: ‘It is small businesses and self-employed people which have helped drag the economy out of previous periods of stagnation, and it is therefore extremely concerning that huge numbers of them do not feel they are in a position to take risks in order to grow.
‘The upcoming Spring Forecast is an . . . opportunity which could be used to announce measures to support the small business and self-employed community.’
Businesses require ‘concrete action’
In a recent press release, the British Chambers of Commerce (BCC) stated that businesses were ‘hit hard’ in 2025 by the increase to National Insurance contributions (NICs), with many facing further pressure brought on by rising labour costs.
Patrick Milnes, Head of People and Work Policy at the BCC, said: ‘While the Spring Statement will provide a fuller update on the economic outlook, businesses are clear they want to see concrete action to reduce costs, boost exports and encourage investment.’
Burgeoning requests
In addition to requests from leading business groups, campaigns have sprung up urging the Chancellor to double the Income Tax threshold for state pensioners and scrap the so-called ‘holiday tax’.
A petition calling for the Chancellor to increase the Income Tax threshold has received over 90,000 signatures. The current threshold sits at £12,570 – the campaign urges the government to grant pensioners a separate tax code which would permit them to earn £25,140 before having to pay tax.
Introduction of a ‘holiday tax’
Meanwhile, more than 200 leading hospitality and leisure CEOs have called on the government to abandon plans for a ‘holiday tax’. The Visitor Levy would apply in England, and would be applied to overnight stays in hotels, B&Bs, guesthouses and holiday lets.
The CEOs warn that the implementation of such a tax would ‘hit families hardest, put jobs at risk and drain money from local businesses and communities’. The proposed holiday tax would mean that Brits would face an extra £100 or more for a two-week holiday in the UK.
Allen Simpson, Chief Executive of UK Hospitality, commented: ‘Holidays are for relaxing – not taxing. Whether you enjoy a city break, a rural retreat or building sandcastles on your beach holiday, you’re already paying your fair share of tax.
‘In fact, it’s one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further.’
The Chancellor could choose to use the upcoming Spring Statement to address these issues.
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