As the Labour Party prepares for its annual conference, Prime Minister Keir Starmer and Chancellor Rachel Reeves face the challenge of regaining the trust of business leaders. Following a charm offensive aimed at the business community before the election last July, the party promoted itself as a strong ally of the business sector. Reeves remarked that the government aims to be the most pro-business administration in the UK’s history.
Key supporters, including billionaire John Caudwell, have shifted their backing from the Conservative Party to Labour. Caudwell, along with 120 other business leaders, signed a letter advocating for change, citing a need for focus and stability in the economy. However, after the election, Labour’s narrative has shifted, warning of difficult choices and presenting a Budget that raised employers’ National Insurance by £25 billion, leading to disappointment among business leaders. Caudwell commented that the recent Budget adversely affected business sentiment, noting that the increases in National Insurance disproportionately impacted businesses employing many low-wage workers.
Voices from other business sectors echo similar concerns. Rachel Carrell, leader of Koru Kids, expressed a loss of confidence, noting a need for the government to act swiftly to improve the business climate. A mixed picture emerges from various confidence indicators; the Institute of Directors reported a steep decline in confidence following the election and Budget announcements, while the Lloyds Bank survey suggests a more stable outlook.
Amid rising costs and declining job vacancies, particularly in hospitality, many small business owners hope for a review of business rates. The government has touted significant investments from major companies, yet some business owners, like Mark Hargreaves, feel neglected amid broader economic discussions.
As Labour aims to reassure the business community, the focus will be on delivering tangible results that encourage investment and growth.
Source: https://www.bbc.com/news/articles/cn0xyxnyz48o?at_medium=RSS&at_campaign=rss