UK business faces ‘January of Discontent,’ warns tory ex-minister
British businesses are bracing for what former conservative minister Andrew Griffith has described as a “January of discontent,” with the possibility of the country slipping into a recession early next year.
Griffith, now shadow business secretary, laid the blame squarely on Sir Keir Starmer’s Labour government, accusing it of implementing damaging economic policies. Speaking to the Financial Times, Griffith criticised Labour for “trash talking” the economy, introducing what he labelled as “horror show” employment reforms, and delivering an anti-business Budget that has stifled growth.
Labour’s economic approach under fire
Griffith argued that Labour’s policies have significantly undermined business confidence. He pointed to delays in delivering the Budget, increased tax burdens, and negative rhetoric about public finances as factors contributing to the current economic malaise.
“Businesses don’t generally fail in December,” Griffith explained. “It’s only after christmas, when rent bills fall due and the reality of the year ahead sets in, that the cracks start to show.”
The former chief financial officer at sky suggested that some economists already believe the UK entered a recession on a per capita basis during the third quarter of this year. He emphasised the precarious position many businesses find themselves in, with the cumulative effect of Labour’s policies exacerbating an already challenging economic environment.
Labour’s strained relationship with business
During the general election campaign, Labour touted the support of over 120 business leaders. However, when asked recently, only 28 of them reiterated their backing, according to a report by City AM.
Griffith accused Labour of misleading the business community, claiming that Starmer had “pulled the wool over their eyes.” He further criticised Labour’s economic philosophy, describing it as a “far-left socialist” agenda focused on redistribution from the private sector to the public sector.
“This government has gone out of its way to pick fights with business,” Griffith said. “Many senior ministers simply don’t understand business, nor do they have experience in the private sector.”
Conservatives aim to rebuild trust
Griffith acknowledged that the conservatives had lost support among businesses after 14 years in power. He attributed this to several unprecedented challenges, including the pandemic, Brexit, and the war in Ukraine, which complicated economic policymaking.
Despite this, Griffith expressed confidence that the Tories could regain the trust of the business community by advocating for lighter taxes, deregulation, and a smaller state. He suggested that Labour’s honeymoon period with business leaders was coming to an end.
“The love-in with Labour is over,” he declared, insisting that the Conservatives would offer a more business-friendly approach.
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While the Tories are not currently proposing concrete policies, Griffith hinted that a future conservative government might roll back Labour’s employment reforms, which he criticised for granting trade unions excessive power. “We think the scope of Labour’s reforms takes us back to the 1970s in terms of union influence over businesses,” he said.
Balancing priorities
Griffith also addressed the national living wage, which the conservatives are committed to maintaining. However, he described it as “a burden on business,” reflecting ongoing tensions between supporting workers and easing pressures on employers.
The conservative party’s current focus, according to Griffith, is on rebuilding relationships with the private sector. He stressed that this would require a shift away from Labour’s perceived overreach into business affairs and towards policies that prioritise growth and competitiveness.
Looking ahead
With the next general election more than four years away, the Tories have time to refine their economic policies. Griffith’s comments signal a clear intention to position the party as the champion of business, presenting a stark contrast to Labour’s approach.
As Britain prepares for what could be a challenging start to 2025, businesses will be closely watching how both major parties navigate the economic headwinds. The question remains whether the conservatives can capitalise on dissatisfaction with Labour’s policies to regain their standing as the party of business.
