The country's foremost business organisation has called on the Chancellor to reduce employer tax burdens and lower energy costs ahead of his debut Budget, setting out concerns that additional fiscal pressure on companies could weigh on both investment levels and employment.

Ahead of the 28 October Budget, the Confederation of British Industry urged the Chancellor to allow companies room to adjust, pointing to mounting cost pressures and unresolved questions around the government's tax direction.

In its Thursday Budget submission, the group called for the employer National Insurance threshold to rise by £1,000 — shifting from £5,000 to £6,000 — describing the change as a way to reduce the cost burden on businesses hiring younger workers. Plans to reduce hiring barriers for workers aged under 25 are reportedly under review by the Chancellor, according to earlier coverage from a prominent broadcaster.

The CBI put three additional proposals to the Treasury: removing policy-driven levies from commercial energy bills, restructuring the business rates system, and simplifying the tax code.

The CBI's chief executive, Rain Newton-Smith, argued that adding further financial burdens to businesses would work against the government's aim of stimulating growth, calling instead for the Budget to reduce costs weighing on firms, streamline the tax system, and create clearer conditions for investment. Her remarks followed a meeting between the Chancellor and senior figures from Tesco, Marks & Spencer, Sainsbury's and other large retailers who had sought relief from rising employment costs.

Trade bodies and employers have pointed to the reduction in the employer National Insurance contributions threshold — brought down from £9,100 to £5,000 under the previous administration — as a factor that has raised the cost of taking on entry-level and part-time staff.

Gathered in a Tuesday session alongside other senior government figures, the Chancellor presented business leaders with a pledge to position the country as the world's foremost destination for commercial investment. The pledge has drawn notable anticipation ahead of the Budget, yet analysts have pointed to growing defence and debt-servicing costs as pressures that may push the Treasury toward raising taxes.

A poll conducted by Helm — a network that brings together early-stage companies — found that only one in 25 founders expected the Budget to have a positive effect on their businesses. Taxation of capital or assets topped the list of worries for roughly nine in ten people who took part in the Helm survey.

Helm's chief executive, Andreas Adamides, argued that ongoing uncertainty around potential capital gains tax rises or additional wealth levies left founders without a reliable basis for long-term financial planning.

The Chancellor is understood to be planning to keep capital gains tax rates below income tax levels, a position that has drawn pushback from a think tank with Labour ties that has been advocating for the levy to be brought in line with income tax rates. The Institute for Public Policy Research projected that adjusting capital gains tax to include generous provisions for loss relief — alongside an exemption covering fast-growing start-ups whose valuations climb by at least £50 million — would deliver roughly £16 billion in additional Treasury revenue.