London Daily

Focus on the big picture.
Friday, Oct 24, 2025

Business secretary plays down prospect of major tax rises in budget

Business secretary plays down prospect of major tax rises in budget

Kwasi Kwarteng says emphasis now is on trying to provide critical support rather than reducing deficit
The business secretary, Kwasi Kwarteng, has played down the prospect of significant tax increases to start reducing the deficit in the public finances in Wednesday’s budget.

While the chancellor, Rishi Sunak, has said the country cannot not “go on spending money for ever”, Kwarteng said the priority for now was to support the economy.

“For now, what we have to do is support businesses, individuals, families, through what has been an extremely difficult time,” he told BBC Breakfast. “We have got another three years to run in the parliament and the chancellor will be looking to reduce the deficit. For now, I think the real emphasis is on trying to provide critical support.”

The chancellor is said to be considering raising corporation tax to as much as 25% from 19%. Kwarteng told BBC Breakfast that Sunak had “already indicated” that he would be extending the furlough scheme.

On Monday, the former Tory leader William Hague said taxes would “have to go up”. Writing in the Daily Telegraph, he said: “It pains me to say, after spending much of my life arguing for lower taxes, that we have reached the point where at least some business and personal taxes have to go up.” He added that those who opposed some form of tax rises in the current climate were buying into “dangerous illusions”.

Asked about whether he thought there would be higher taxes on companies that had “done well” out of the pandemic, Kwarteng said: “I am a Conservative, and I’ve always been a low-tax Conservative. I think that the best way to grow an economy, generally, is to promote enterprise, small business and larger businesses as well, but at a time like this, our focus has been on trying to keep things going and providing vital support to families and businesses, at a very difficult time.”

He told the BBC Radio 4’s Today programme he was sure in the future there would be a “debate about the right level of taxation”, but for now the focus was on providing support.

Kwarteng would not be drawn on whether businesses could expect an extension of the business rates holiday, saying only: “I think there will be continued support. I think that will be perhaps an extension of the VAT holiday.”

It comes as Sunak is expected to provide more than £400m of additional support for the culture sector to help museums, theatres and galleries in England to reopen once coronavirus restrictions start to ease in the coming months.

Sunak is expected to put an extra £300m into the £1.57bn culture recovery fund as part of the measures.

In teasers before the budget, Treasury officials also said Sunak was preparing to give a “significant chunk” of a £300m sports recovery package to help cricket fans return to stadiums this summer.

He will also announce a £150m community ownership fund to allow pubgoers to bid for up to £250,000 to save their favourite local.

National museums and cultural bodies will also receive £90m to help keep them going until they can open their doors on 17 May at the earliest. Another £18.8m will be provided for community cultural projects, while an additional £77m will be given to the devolved administrations in Scotland, Wales and Northern Ireland to provide their culture sectors with similar support.

Sunak said: “This industry is a significant driver of economic activity, employing more than 700,000 people in jobs across the UK, and I am committed to ensuring the arts are equipped to captivate audiences in the months and years to come.”
Newsletter

Related Articles

0:00
0:00
Close
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
×