“Labour just don’t understand business. The closest that most Labour MPs have been to a private sector business is standing outside one on a picket line.”
Labour’s ideological approach to governance has sparked outrage among business leaders and industry experts, who claim the party’s policies are stifling growth, threatening jobs, and undermining confidence in the UK as a place to invest.
The backlash has been sharp, with prominent figures calling out Labour’s “job-killing” measures and warning of long-term damage to the economy.
“Labour Doesn’t Understand Business”
Andrew Griffith MP encapsulated the frustrations of many in the private sector, stating: “The closest that most Labour MPs have been to a private sector business is standing outside one on a picket line.” His remarks highlight a growing perception that Labour’s leadership is out of touch with the realities of business and the engines of economic growth.
Critics argue that Labour’s sweeping tax hikes, including the controversial £25 billion National Insurance raid, will strangle businesses, leading to fewer jobs and lower wages. The president of the Confederation of British Industry (CBI), Rupert Soames, described the approach as treating British businesses like “a cash cow that’s been milked.” He warned that without a radical shift, the UK risks becoming increasingly unattractive to investors.
CBI Director-General Rain Newton-Smith echoed these concerns, telling business leaders: “The rise in National Insurance caught us all off guard … Tax rises like these must never again simply be done to business.”
Businesses Sound the Alarm
Salman Amin, CEO of McVitie’s owner Pladis, voiced serious concerns about the UK’s competitiveness. Speaking at the CBI conference on Monday, he said: “It’s becoming harder to understand what the case for investment is … to make a difference in the growth rate of the economy.” His company has invested over £2 billion in the UK over the past decade but now questions the viability of further commitments under Labour’s policies.
The aviation sector has also raised alarms. Shai Weiss, CEO of Virgin Atlantic, estimated that the National Insurance hike alone would cost the airline an additional £10 million annually. “It won’t have an immediate impact on jobs, but it’s money we would have spent on other things, and on innovation,” he said.
Retail chiefs are equally concerned. Helen Dickinson, head of the British Retail Consortium, warned that Labour’s tax burden will reignite inflation, with rising costs inevitably passed on to consumers. “Retail already operates on slim margins,” she said, “so these new costs will inevitably lead to higher prices.”
Adding to the scepticism surrounding Labour’s approach, Christopher Hope from GB News observed: “I have been to a lot of speeches by senior politicians at CBI annual conferences over the past three decades, but few have ever been received in such awkward silence as this question and answer session with Chancellor Rachel Reeves.”
Impact on Family Farms and Small Businesses
The criticism doesn’t stop with corporate giants. Labour’s changes to inheritance tax on family farms and small businesses have been branded disastrous by the National Farmers Union (NFU) and the Country Land and Business Association (CLA). The so-called “farm tax” could see family-run farms forced to sell land or shut down entirely, with the NFU estimating that 75% of farms will be affected, far higher than Labour’s claimed 27%.
Similarly, Labour’s changes to business property relief are causing alarm among small and family-run businesses. One manufacturer described the tax burden as a direct threat to long-term planning and capital investment, stating: “At best, it will mean closing or selling a plant. At worst, it’s an existential threat.”
Labour’s Contradictory Approach
Conservative MP Nick Timothy has accused Labour of saying one thing while doing another: “If you want to understand a government, it is better to watch what ministers do than listen to what they say.” Labour’s rhetoric about supporting growth and jobs is starkly at odds with the reality of its policies, which are actively discouraging hiring, investment, and innovation.
Rachel Reeves, the Chancellor, continues to claim her Budget is “good for jobs and good for growth,” but her assertions have been met with scepticism. The Recruitment and Employment Confederation (REC) said her policies are causing businesses to “think twice about hiring,” undermining Labour’s stated goals.
“A Taker, Not a Maker”
The cumulative effect of Labour’s policies is seen as deeply damaging. By taxing success instead of fostering it, critics argue the government is a “taker, not a maker; a destroyer, not a creator.” The result, they warn, will be slower growth, reduced investment, and fewer opportunities for workers across the country.
As businesses brace for further challenges, the message to Labour is clear: stop treating the private sector as an adversary and start recognising it as the driving force behind Britain’s prosperity. Whether the government will heed these warnings remains to be seen, but confidence is rapidly eroding, and the clock is ticking.
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