Speaking at the International Monetary Fund (IMF) Annual Meetings in Bangkok yesterday (Thursday 15 October), Healey warned conflict in the Middle East and Ukraine was pushing up energy prices and Government borrowing costs, impacting businesses and households.
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The Chancellor said: “The UK economy is resilient and my Budget will protect Britain’s resilience through this turbulent time.”
He stressed “fiscal discipline” was the foundation for supporting families and businesses, while highlighting the importance of international cooperation to strengthen economic resilience and deliver growth.
During a press conference following the address, the Chancellor also said the Prime Minister had spoken about recognising “the cost of business, not just the cost of living”.
Breathing space
He added the Government would do what it could in the Budget to give businesses and households “a bit of breathing space”.
This comes after Healey met with senior leaders from the retail, hospitality, leisure and small business sectors on Tuesday 13 October, including UKHospitality (UKH), at Downing Street.
Discussions reportedly centred on the challenges facing businesses ahead of the Budget, such as rising operating costs, alongside measures to encourage investment, recruitment and growth.
Ahead of the Budget, set to take place on Wednesday 28 October, hospitality trade bodies have repeatedly called for measures to ease the sector’s tax burden.
Earlier this week, industry leaders delivered the #VATsTheProblem petition to Downing Street after securing more than 400,000 signatures for the campaign, which is calling for hospitality VAT to be reduced from 20% to 10%.
Further details
UKH also previously urged the Government to reduce employer National Insurance contributions (NICs), warning the sector has faced more than £5bn in additional costs over the past two years.
Meanwhile, figures from the British Beer & Pub Association (BBPA) showed 295 pubs permanently closed during the first nine months of 2026, with 360 closures forecast by year-end unless further action is taken.
The Government has already committed to a 20% business rates cut for pubs, social clubs and live music venues from April 2027, expected to benefit around 32,000 venues and save a typical pub approximately £1,100 annually.
However, operators are awaiting further details on eligibility and wider business rates reform at the Budget.
No additional hospitality-specific measures were announced in the Chancellor’s latest statement.
