Chancellor’s first major speech and what businesses really want 

The Chancellor of the Exchequer John Healey has today given his first major speech in the role, in which he said, “Britain’s growth trajectory has been weak and changing this is central to [his] purpose as the chancellor”. 

To achieve this, he has outlined there will be more devolution, more public leadership and control, more investment, more innovation and more jobs. This includes the announcement of £150 million to be allocated to fast-growing firms in the north of England to create the ‘northern 500’ ambitious businesses led by local mayors. 

Mr Healey did not comment on whether taxes will be raised in his first budget on 28 October, but he did say Labour had made “very strong, very clear, very specific commitments on tax in its 2024 manifesto and this is what we are keeping”. Fiscal discipline remains a priority, and he said he has to ‘re-establish belief in Britain’. 

There was a clear message that he is also looking at national policy to create the right conditions for the private sector to flourish. He highlighted the UK has had one of the lowest rates of investment in the G7 for the last 10.5 years, but real progress had been made in the last two years. 

There will also be an introduction of economic potential analysis which puts the business case into decisions the government makes. He also said he will not allow the opportunity of AI to ‘pass Britain by’. 

Mr Healey’s speech came a few days after the publication of research The Growth Challenge a survey of 272 Owner Managed Businesses launched (01.09.26) by Mercer & Hole in collaboration with the Association of Practicing Accountants (APA).  

Its four key findings are:

• 97% of owner managed businesses rate government support as either poor or very poor 
• 91% expect labour costs to rise in the next 12 months 
• 68% unlikely to make significant capital investment in the next 12 months 
• Only 32% see growth as their main priority 

 Other findings include:  

• 88% anticipate supply-chain costs to rise over the next 12 months, up from 82% in 2025 
• Uncertain trading conditions (40%), wage inflation (20%) and supply-chain inflationary pressures (14%) were identified as the biggest challenges  
• 23% have used AI to reduce costs and/or increase output over the last 12 months  
• Business growth was identified as the main priority for 32% of respondents while sustaining their business was the priority for 49% and business survival for 12%

Despite these concerns many of these businesses remained resilient:

• 49% think they are in better shape than 12 months ago 
• Only 6% identified labour shortages as their biggest challenge, down from 9% in 2025 

Commenting on these findings Mark Cassidy, Joint Managing Partner at Mercer & Hole, said: 

“The government needs to reset its relationship with owner managed businesses if it is to deliver the ‘good growth in every postcode’ the Prime Minister has spoken about. 

“Our research makes clear that current government SME policy is poorly aligned with the practical needs of owner managed businesses who are vital engines for UK economic growth. 

“There is a significant opportunity to unlock and liberate the potential of this sector of the UK economy. To seize it, owner managed businesses must receive the structured, practical support they need to invest, innovate and grow.” 

Jamie Wooldridge, Audit and Business Advisory Partner, has given his insight on today’s earlier announcement, read his article here.

Whilst we will all have to wait until the Budget 2026 for more detail, if you would like to speak to our team about unlocking growth potential in your business, or any other issues raised in today’s speech, please get in touch with a member of the Mercer & Hole team or your usual contact.