Reeves ‘pressures business chiefs to talk up the UK economy’
Rachel Reeves has ramped up pressure on business leaders to “talk up” the economy in the run up to the Autumn Budget.
The Chancellor has framed her rallying cry to businesses that if they do not support a positive narrative around the economy, they risk Nigel Farage becoming Prime Minister.
The Treasury has warned top business leaders that further economic gloom would only bolster Reform UK’s standing, according to the Financial Times.
Just this week the latest monthly City PM/Freshwater Strategy poll showed Nigel Farage’s Reform UK gaining two points in voter share since September, hitting 35 per cent, whilst Labour trailed at 20 per cent.
One business leader told the FT: “We’ve been told that if you want to talk down the economy it will only help Reform, and do you want that as the alternative?”
The new calls come despite both Rachel Reeves and Keir Starmer being accused of talking down the economy in the months following the 2024 election, where the government said parts of Britain were “broken”.
Labour officials have warned that a Reform government undermine economic instability with attacks on the Bank of England and eroding Starmer’s new ties with the European Union.
But Reform has been courting business figures in recent months, hoping their low spending and tax policies would garner favour.
Reeves’ tax raids hit business confidence
The calls from Reeves to businesses come after many industry leaders have lambasted Labour for denting confidence after the 2024 Autumn Budget.
The Chancellor’s tax raid on businesses through the hike to employer’s national insurance contributions has marked a major headache for firms across the country.
A new survey by The Institute of Chartered Accountants in England and Wales (ICAEW) this week showed business confidence sank to its lowest in three years as tax fears weighed.
Researchers at the trade body said it was striking that six in ten businesses claimed the tax burden to be a “growing concern” as levels hit another historic high following a ten-fold rise over the last five years.
But the Treasury has attempted to prove their favour with the City over the last month through sharing videos of JP Morgan’s Europe chief branding the UK as an “increasingly attractive” place to allocate capital and and distributing comments from Microsoft president Brad Smith calling the UK a “force for stability in an uncertain world”.