Fifteen months into the Labour Government’s term, leading business executives are voicing ‘serious disappointment’ with Prime Minister Sir Keir Starmer’s administration, accusing the party of failing to deliver on its pre-election promise to partner with industry on policy.
The disillusionment is palpable as the party returns to Merseyside for its annual conference, with many executives asking ‘what happened’ to the invitation from Starmer last year to have their ‘finger prints on our policy.’ Stuart Rose, the former chief executive of one major retailer, stated there appears to be a ‘vacuum and a mismatch between what’s being said and being done in terms of business engagement,’ adding he is now ‘not convinced’ Labour will secure a second term.
The business community’s concerns stem from a year marked by rising inflation, weak economic growth, climbing unemployment, and surprise tax increases.
Andrew Higginson, the chair of a FTSE 100 retailer who previously endorsed Labour, echoed the sentiment, calling the government ‘a huge disappointment really’ and noting the party has ‘done nothing in government that businesses are pleased with.’ Top of the consternation list is Chancellor Rachel Reeves’ surprise £25 billion NICs increase in her first budget, a measure few bosses would recognise as having their 'fingerprints' on.
Reeves’ forthcoming financial statement and the figure of Greater Manchester mayor Andy Burnham are looming large at the conference, with the latter widely seen as a challenger to Starmer.
While business leaders acknowledge the tough economic inheritance Labour faces, Shevaun Haviland, the director of the British Chambers of Commerce, stressed the importance of regaining corporate confidence after what has been a rocky year.
The prospect of further tax rises ahead of the November 26 budget is adding to a ‘sense of betrayal’ in City boardrooms.
The disillusionment is palpable as the party returns to Merseyside for its annual conference, with many executives asking ‘what happened’ to the invitation from Starmer last year to have their ‘finger prints on our policy.’ Stuart Rose, the former chief executive of one major retailer, stated there appears to be a ‘vacuum and a mismatch between what’s being said and being done in terms of business engagement,’ adding he is now ‘not convinced’ Labour will secure a second term.
The business community’s concerns stem from a year marked by rising inflation, weak economic growth, climbing unemployment, and surprise tax increases.
Andrew Higginson, the chair of a FTSE 100 retailer who previously endorsed Labour, echoed the sentiment, calling the government ‘a huge disappointment really’ and noting the party has ‘done nothing in government that businesses are pleased with.’ Top of the consternation list is Chancellor Rachel Reeves’ surprise £25 billion NICs increase in her first budget, a measure few bosses would recognise as having their 'fingerprints' on.
Reeves’ forthcoming financial statement and the figure of Greater Manchester mayor Andy Burnham are looming large at the conference, with the latter widely seen as a challenger to Starmer.
While business leaders acknowledge the tough economic inheritance Labour faces, Shevaun Haviland, the director of the British Chambers of Commerce, stressed the importance of regaining corporate confidence after what has been a rocky year.
The prospect of further tax rises ahead of the November 26 budget is adding to a ‘sense of betrayal’ in City boardrooms.