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The CEO of BT Group, Allison Kirkby, appears to be gearing up for the government’s annual 2025 Budget announcement by complaining that the operator pays “10 times the amount our peers pay in countries like Germany and the Netherlands” on things like business rates, energy levies and other costs associated with regulation and compliance.
In the recent past, BT, particularly it’s Openreach network access division, has tended to focus more of its public commentary on calls for greater support in the roll-out of full fibre broadband across the UK. The most common requirements to emerge from that have tended to reflect a strong desire for the full adoption of flexi-permits to boost street works, faster planning approvals and easier access to run new fibre into large residential buildings (MDUs); not to mention a generally softer regulatory regime via Ofcom’s current Telecoms Market Review (TAR).
However, Kirkby also has wider considerations, not least in terms of the rising cost of doing businesses in the UK, which came to the fore this morning as part of her keynote speech to the Connected Britain conference in London.
BT previously estimated that it would incur a £100m increase in its costs as a result of the last 2024 Budget (mostly due to the rise in National Insurance contributions), and the fear is that this year’s budget could create even bigger challenges.
Allison Kirkby, BT Group CEO, said (FT):
“We pay in business rates, energy levies and other costs associated with regulation and compliance 10 times the amount our peers pay in countries like Germany and the Netherlands … So we’re already at peak government inflicted costs.
We’ve got to make sure that these massive infrastructure groups that will bring billions of pounds to the economy in the coming years … get a return on investment.”
Much of the news media currently still seems to be anticipating more tax rises from the next budget, which is due to be delivered on 26th November 2025. Suffice to say that Kirkby may not get what she wants, particularly while the government are still struggling to find enough money to do everything they desire. But then again, rabbits do sometimes get pulled out of hats on budget day. We’ll find out soon enough.
Kirkby is also an adviser on the government’s Board of Trade.