Chancellor John Healey Pledges Budget to Ease “Cost of Business” as Government Approves Jackdaw Gas Field

London: Chancellor of the Exchequer John Healey has promised that his first Budget will focus on reducing the cost of doing business in Britain, acknowledging that firms have been under considerable strain from successive tax rises and regulatory changes, as the government gave final approval to the long-delayed Jackdaw gas field in the North Sea.

Speaking ahead of his maiden Budget on Wednesday, October 28, Healey said he wanted his statement to back what he called “bloody-minded entrepreneurs” and to support British businesses in making a profit. He said he was conscious that companies, like households, have been affected by the cost-of-living crisis, and that he intended to address business costs alongside household pressures. The Chancellor is expected to cut red tape, particularly by reducing reporting requirements for smaller firms.

The remarks represent an effort to repair relations with the private sector, which has been a target for revenue raising at three consecutive fiscal events. Healey accepted that the government’s overhaul of workers’ rights and its tax measures had placed many firms under a lot of pressure, but defended earlier decisions, including increases to employer National Insurance contributions and business rates under his predecessor Rachel Reeves, as necessary to repair what he described as the Conservatives’ neglect of the public finances.

Healey, whose appointment by Prime Minister Andy Burnham surprised many in the business and financial community, nonetheless faces a difficult fiscal backdrop. Rising borrowing costs and higher defence spending have squeezed the government’s headroom, and he is expected to raise taxes on banks. Reports have also suggested the Treasury is examining tougher tax treatment when owners pass on family businesses, which accountants have warned could deter entrepreneurs.

The Chancellor made his comments during a visit to Aberdeen to mark the approval of the Jackdaw gas field, located about 150 miles east of the city. The field, owned by Adura, a joint venture between Shell and Norway’s state-owned Equinor, is among the largest undeveloped gas reserves in the North Sea and, according to its developers, could supply around 6 percent of North Sea gas production. The government said gas could begin flowing to homes and businesses from the end of this month.

Jackdaw was first approved by the Conservative government in 2022, but that consent was later ruled unlawful following a legal challenge over how emissions from burning the gas had been assessed. Healey said the approval reflected the need to make the most of Britain’s homegrown energy and to turn the country’s natural resources into long-term investment.

The decision was welcomed by Scottish Secretary Douglas Alexander, who described it as a win for Aberdeen, and by industry body Offshore Energies UK, which said it could be a first step towards unlocking £50 billion of investment in new North Sea production. Conservative MP Douglas Lumsden urged the government to ensure it was not a one-off approval. Environmental campaigners and some opposition politicians criticised the move, arguing that the project would create few jobs and distract from planning a fair transition for workers as North Sea reserves decline.