CBI: Labour pledges could “crack the foundations of the economy”
The head of Britain’s biggest business group warned yesterday that Jeremy Corbyn’s policies could “crack the foundations of the economy” at the start of a week which holds the potential to define the upcoming General Election.
Carolyn Fairbairn, head of the CBI, told Sky News that business leaders are asking “who’s next” after the “bolt from the blue” plan to part-nationalise BT, announced by the Labour party on Thursday evening.
Labour’s nationalisation proposals would “freeze investment”, she added, saying the party did not seem to “value (any) of the contribution that business makes”.
City commentator David Buik said last night that “a business environment threatened by public ownership… will not encourage investors to set down their stalls here in Old Blighty”.
The warning comes ahead of the big business lobby group’s annual conference in London today, during which Prime Minister Boris Johnson will promise a slew of business tax cuts.
He will confirm plans to cut business rates, reduce national insurance contributions for 500,000 employers and increase the scope of research and development tax credits.
Writing in today’s City PM, chancellor Sajid Javid has pledged a full review of the business rates regime, saying: “The system didn’t work properly when my dad ran a shop, and it certainly doesn’t work properly in the digital age.”
Johnson is expected to say: “Let’s not beat around the bush, big business didn’t want Brexit.
“But what is also clear is that what you want now — and have wanted for some time — is certainty.”
Labour leader Corbyn and Lib Dem supremo Jo Swinson will also address delegates at the event.
The Prime Minister will face off against Corbyn tomorrow at the first of several election debates. The main parties’ respective election manifestos are also due to be released this week.
Labour’s manifesto will launch on Thursday, amid chatter that it will be even more radical than the 2017 version. Party insiders hope it will turn ominous-looking polls in Labour’s favour.
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