The Chancellor cannot afford to balance the books on the backs of businesses

The Chancellor has an unenviable task ahead of him as he prepares to deliver his upcoming Budget next week. There is very little wriggle room and decisions of his predecessors have only clouded the economic picture further.

It is very clear that the Labour Government is at a crossroads when it comes to delivering economic growth. The imperative of economic growth is evident, it is one of the few things where there is cross-party consensus. However, how that aim is going to be achieved remains the £3trillion question.

Andy Burnham’s Government would be making a mistake if it continues on the path of punishing wealth creators. Businesses have been left groaning under the weight of a huge tax burden as a result of measures introduced by former Chancellor Rachel Reeves. The legacy of her Budget has been felt most acutely by farmers, to the extent that agricultural businesses are increasingly running down their assets and withholding investment to avoid falling into the family farm tax threshold. That is indicative of economic policy that is failing. It certainly is not going to deliver growth.

This Budget will be delivered against a backdrop of a growing Neet (young people aged 16 to 24 that are not in education, employment or training) problem. Businesses are the solution to this issue but many rightly point to punitive costs associated with giving young people an opportunity as a barrier.

The country has at large accepted that this is a fresh start for Labour with the party having changed leader earlier this year.

Chancellor John Healey needs to be decisive, not least on defence. Defence spending hangs like the Sword of Damocles over his head, having resigned as Defence Secretary over the Treasury’s failure to provide the necessary funds to ensure Britain can protect itself.