BT boss attacks ‘government-inflicted costs’

Core Viewpoint - The CEO of BT, Allison Kirkby, criticized the high costs imposed by the UK government, claiming they hinder British businesses' competitiveness compared to their European counterparts [1][2]. Group 1: Government Costs and Business Impact - BT claims to pay "10 times the amount our peers pay" in business rates, energy levies, and regulatory costs compared to companies in Germany and the Netherlands [2]. - The company has already reached "peak government-inflicted costs," with the 2024 Budget costing an additional £100 million primarily due to increased employer National Insurance contributions [3]. - British companies face the highest electricity prices in the developed world, with UK electricity costs being approximately 50% higher than in Germany or France and four times more expensive than in the US [4][5]. Group 2: Economic Outlook and Fiscal Stability - Kirkby emphasized the need for greater fiscal stability, stating that the UK is currently a "sluggish, high inflation market" and must return to growth [7]. - Economists estimate that the upcoming Budget must address a £20 billion shortfall in public finances, which could pose challenges for the Chancellor [6][7]. Group 3: Industry Concerns and Recommendations - Business lobby groups have urged the Chancellor to avoid raising taxes on businesses, reflecting a growing backlash against anti-growth policies [8]. - The CEO of EnQuest highlighted a 90% reduction in investment in the North Sea over the past decade, leading to a shift from being a gas exporter to importing half of its fossil fuel needs [9]. - Recommendations include cutting windfall taxes on the oil and gas sector to help address public finance issues [10].