Britain’s largest business lobby groups, known collectively as the B5, have faced criticism for failing to prevent a major rise in employers’ National Insurance contributions, announced in Rachel Reeves’ October Budget.
The £25 billion increase has sparked widespread business backlash, with some questioning the effectiveness of the Confederation of British Industry (CBI), British Chambers of Commerce and others in representing the interests of businesses, especially small and medium-sized enterprises (SMEs). ).
Steve Morley, chairman of the British Metals Industry Association, accused B5 of being “too warm” with government officials and “naive” in its defence. “Given their direct access to Whitehall, their failure to deliver for businesses makes them look disingenuous at best,” he said.
The budget was widely criticized for undermining employment and investment plans, especially in manufacturing sectors already suffering from challenges such as falling electric vehicle sales and emissions targets. Morley warned that the “additional burden” on SMEs could stifle optimism about Labour’s proposed industrial strategy.
The government’s consultation on an industrial strategy focusing on eight high-productivity sectors has raised hopes for long-term support, but Morley called for the voices of SMEs to be better represented in shaping future policies.
While B5 declined to comment, Roger Parker, director of policy at the Institute of Directors, defended his organisation’s efforts, saying it was “very critical” of the Budget’s impact on businesses. Recently, Robert Soames, head of the Central Bank of Iraq, described the government’s treatment of companies as akin to viewing them as “cows to be milked.”
As the government begins to evaluate responses to its industrial strategy proposals, pressure is increasing on business groups to prove their value in supporting industries facing rising costs and regulatory challenges.
Comments are closed, but trackbacks and pingbacks are open.