McVitie’s biscuits boss dunks on UK as investment destination
The boss of the company behind biscuit giants McVitie’s, Jacobs and Carr’s has warned that the UK has become a less attractive place to invest.
Speaking at the Confederation of British Industry (CBI)’s annual conference on Monday, Salman Amin, the chief executive of Pladis, the firm behind the iconic brands, warned that Britain has become less attractive as a place to do business.
He said: “Historically we’ve been super bullish on the UK. In fact, by far, the greatest investment across all of our countries over the last decade or so has come to the UK … so we’ve been a very major investor in the UK.”
But he cautioned: “We would like to continue to be a major investor going forward. It’s becoming harder to understand what the case for investment is.”
Amin was the latest business voice to weigh in on concerns following Labour’s first Budget and its effect on Britain’s economy.
While CBI director general Rain Newton-Smith warned tax hikes in the fiscal statement had made it harder for businesses to “take a chance” on hiring people, as the government prepares to announce big welfare reforms that aim to “get Britain working”.
Writing in today’s City PM, Amin said: “Growth will only come when business and government fly in formation. By that I mean business and government need to deeply understand one another.
“It is only by trusting and truly understanding each other’s perspectives that we will deliver a genuinely inclusive industrial strategy.”
Chancellor Rachel Reeves used an appearance at the CBI conference to defend her government’s approach to business following a backlash against measures unveiled at last month’s Budget.
Asked during a fireside chat with the Scottish Power boss Kevin Anderson whether she would “rethink any of the measures that you’ve announced”, Reeves insisted: “We’ve made our decisions.”
She said: “It’s really important that the sums add up, and I’m determined to be the Chancellor that puts our public finances on a firm footing after all the instability that we’ve faced these last few years.
“We’ve made our decisions. I’ve had lots of feedback on the budget, but what I haven’t heard is any credible alternatives to what I did to put our public finances on that firm footing.”
Reeves also insisted she would not be coming back to the despatch box to announce plans for more borrowing or further tax rises.
Asked if she could confirm there would be no more big tax rises on businesses, she said: “We have now drawn a line under the fiction peddled by the previous government.
“We’ve put our public finances back on a firm footing, and we’ve now set the budgets for public services for the duration of this Parliament.
“Public services now need to live within their means because I’m really clear, I’m not coming back with more borrowing or more taxes.”
But Rupert Soames, CBI chairman, said despite some “helpful” measures such as the corporate tax roadmap, businesses have been “milked as the cash cow” in Labour’s Budget.
Soames also highlighted the government’s plans to get people back into work, which he argued were “directly in conflict” with a Budget which makes hiring people “much more expensive” and the planned employment rights package which he said made taking on new hires “much more risky”.
He continued: “It’s hardly surprising that business people are scratching their heads and asking themselves: ‘What really is the government trying to achieve, and how do these policies hang together?’”
Shadow Chancellor Mel Stride commented: “Rachel Reeves has some gall to stand in front of business leaders and suggest that she is on their side.
“Labour’s national insurance jobs tax will punish businesses across the country – making it harder for them to create jobs, driving down wages and discouraging investment.
“Thanks to Labour’s choices, independent forecasts are predicting growth slowing, inflation rising and borrowing soaring. It is clear all she has delivered so far is a litany of broken promises.”