More than 120 prominent business leaders have endorsed the Labour Party’s economic plans ahead of the general election, which has dramatically boosted the party’s financial credibility. Here’s the full story.
Significant Boost
The Labour Party, led by Keir Starmer, has received a significant boost to its chances at election ahead of the fast-approaching general election, scheduled for July 4.
Coup de Grace
In what many will view as a coup de grace for the party over their struggling Conservative adversaries, more than 120 prominent business leaders have publicly endorsed the Labour Party’s economic plans.
About Face
This endorsement marks a spectacular about-face in political support, as figures from various sectors—including financial services, retail, and manufacturing—expressed their confidence in Labour’s ability to drive long-term growth in an open letter published in The Times.
Commitment to Collaborating
The business leaders, including well-known names such as TV chef Tom Kerridge and Wikipedia founder Jimmy Wales, stated that Labour has demonstrated a commitment to collaborating with the business community.
“It Is Time for a Change”
The letter begins, “We, as leaders and investors in British business, believe that it is time for a change. For too long now, our economy has been beset by instability, stagnation, and a lack of long-term focus.”
“Lack of Political Stability”
It continues, “The United Kingdom has the potential to be one of the strongest economies in the world. A lack of political stability and the absence of consistent economic strategy has held it back. The country has been denied the skills and infrastructure it needs to flourish.”
Switching Sides
This endorsement is particularly striking given that, in the lead-up to the 2015 election, 100 corporate leaders signed a similar letter in support of the Conservative Party.
Shifting Support
In a significant about-turn, some previous signatories, such as Malcolm Walker, the founder of Iceland supermarket, have now shifted their support to Labour.
Growing Sense of Disillusionment
This change reflects the growing sense of disillusionment felt by many in business with recent Conservative policies, including the controversial and disastrous mini-budget under Liz Truss and the Conservative government’s poor handling of Brexit.
Economic Vision
Labour has been aggressive in promoting its economic vision, with shadow chancellor Rachel Reeves stating that she wishes to create the most “pro-growth Treasury in our country’s history.”
“Stagnation of the Last Decade”
Following what the letter calls the “stagnation of the last decade,” Labour will be hoping that this major backing by a series of business leaders will convince voters that the economy is safe in their hands.
Economic Defence
In response to Labour’s endorsement by business leaders, the Conservative Party has defended its economic record.
French Workers Rights
According to the BBC, Chancellor Jeremy Hunt’s advisers have cautioned businesses about potential shifts toward French-style workers’ rights under a Labour government.
“Clear Plan”
Chief Secretary to the Treasury Laura Trott stated, “Rishi Sunak and the Conservatives have a clear plan that businesses can rely on. We took the bold action to deliver the biggest business tax cut in modern history.”
Missing Endorsement
Despite these assertions, the lack of a coordinated effort by the Conservatives, who have typically been viewed as the party of business, to secure a similar endorsement from the business community is notable.
“Crying Out for Stability”
Other parties also weighed in with their own criticism of the Conservative Party’s handling of the economy. The Liberal Democrats spokesperson stated that the business community was “crying out for stability and certainty after years of the Conservatives’ chaos and mismanagement.”
“Boost Investment”
They added, “The Liberal Democrats would launch an industrial strategy to boost investment and reform the broken business rates system to support our high streets.”
“Britain Is Broken and Brexit Broke It”
However, the Scottish National Party used the announcement to attack Labour over their silence on Brexit, with SNP MP Drew Hendry accusing the party of “ignoring the most fundamental reason for the economic decline of the United Kingdom – Britain is broken and Brexit broke it. Only the SNP will fight for a future back at the heart of the European Union.”
Political Shift
Despite the criticism, Labour hopes that the endorsement of Labour by many business leaders will suggest a broader shift in the political climate.
Desire for Change
If the letter, as Labour claims, indicates a growing desire for change among the business community, driven by dissatisfaction with the current economic trajectory and governance, this could boost Labour’s economic credibility.
20 Points Behind
With the Conservatives still 20 points behind Labour in the polls, this could be the lynchpin allowing Labour to appeal to a broader section of the electorate while showcasing the party’s readiness to govern in partnership with the private sector.
120 Business Leaders
The backing of Labour’s economic plan by more than 120 business leaders represents a major win for the party as it heads into the general election.
End to Economic Misfortune?
However, it remains to be seen if the letter alone can convince a public exhausted by years of bad economic news that lending the Labour Party their vote will be enough to change the country’s economic misfortune.
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Featured Image Credit: Shutterstock / Martin Suker.