'Tax rises' in Budget: London business chiefs warn against new levies as Chancellor John Healey unveils plan

London bosses warned Chancellor John Healey not to hammer businesses with more tax rises as he seeks to boost Britain’s economic growth.The London Chamber of Commerce and Industry (LCCI) urged the Government to “lower the cost of doing business” and make the capital “more internationally competitive for investment, talent and job creation”.Andy Burnham and John HealeyPA WireHe will also announce a £150 million fund for fast-growing northern firms.But LCCI chief executive Karim Fatehi told The Standard: "The Chancellor must have two clear objectives in mind at this Budget: meaningfully lowering the cost of doing business, and making the capital more internationally competitive to drive UK-wide growth. “With business costs at exceptionally high levels, our members are clear they cannot absorb any further costs.”The Treasury is reported to be modelling increases in capital gains tax and higher levies on banks and profits of energy companies. But the LCCI called on the Government to reverse the £20 billion hike in National Insurance contributions for employers in Rachel Reeves’ first Budget which is widely blamed for hitting thousands of businesses and undermining economic growth.Karim Fatehi, chief executive of the London Chamber of Commerce and Industry, urged the Chancellor to focus on the capital to drive economic growthSuppliedMr Fatehi added: “The Budget needs to recognise that the most successful economies across the world build a consensus around their capital succeeding. “We cannot achieve growth in every UK postcode without actively deciding to make London more internationally competitive for investment, talent and job creation.” Read MoreHe highlighted billions of pounds allocated to build more council and social housing in the city.In his speech, Mr Healey is expected to tell an “optimistic story” about Britain, echoing Mr Burnham’s more upbeat note than during Sir Keir Starmer’s premiership.Mr Healey was due to outline his aim to spread growth more widely across the UK by using public investment to attract private capital.The British Business Bank will commit up to £150 million to a new fund for the North “to get behind the most innovative and fast-growing firms”, the Chancellor is expected to say.“This is not sentimentality, it’s supply side economics,” he is set to add.New Shadow Chancellor Andrew GriffithPABut new shadow chancellor Andrew Griffith dismissed the trail of Mr Healey’s speech as a “policy-light word salad” which would “do little to comfort hard-working families and businesses worried about more tax rises”.Economists have warned that Mr Healey will almost certainly have to raise taxes or cut spending to stick to the Government’s fiscal rules.