UK business leaders shocked by Labour's unexpected economic moves
Labourʼs pre-election business-friendly promises face reality check after recent budget announcements. Corporate leaders who backed the party now express strong disagreement with new tax policies
In early-2024 Rachel Reeves started her business charm campaign with fancy breakfast meetings (where salmon was always on the menu) to win over corporate Britain
The strategy seemed perfect: polls from 06/24 showed that 39% of companies trusted Labour more than the Tories (30%) on economic matters; this was a big-time shift in business confidence. Around the same period over hundred-twenty business bigwigs signed a pro-Labour statement
Labour has shown it wants to work with business to achieve the UKʼs full economic potential
Now its all different. Andrew Higginson from JD Sports (who signed that letter) thinks new tax rules are too harsh. The mood has changed — CBIʼs latest survey shows 61% of firms dont like the budget; while 60% think UK is now less business-friendly
The £25bn yearly rise in employers National Insurance hits hard: big companies like BT‚ Sainsburyʼs and M&S face huge tax increases that will affect workers pay‚ hours and prices. Labourʼs new rules include strict wage regulations and other business-related red tape
- Higher minimum wage rules
- More labour market control
- Increased regulatory pressure
- New state intervention policies
The signs were there: Labours manifesto had 62 business-control policies versus just 13 business-friendly ones. Corporate Britainʼs strategy of getting cozy with govt through fancy No 10 garden parties isnt working — theyʼre learning that being “in the room“ means nothing when real decisions are made
