Keir Starmer tells business leaders: ‘We've asked a lot of you'
Stepping on stage at the QEII Centre in Westminster on Thursday, the prime minister was full of thanks and acknowledgement of the effect the government's cost increases have had on businesses.
Addressing the annual British Chambers of Commerce conference after an earlier breakfast meeting with bosses of more than a dozen companies, including Heathrow, Spire Healthcare and NatWest, Sir Keir Starmer signalled an attempt to rebuild strained relations.
'I want to begin by thanking you all because look, I fully acknowledge here that this year, as we've had to fix the foundations of our country, deal with the unprecedented mess that we inherited, we've asked a lot of you. I understand that,' he said.
• 'Freeze taxes' says business lobby after national insurance hit
After being wooed in the run-up to July's election victory, businesses have since hit out at the 'size and scale' of Labour's rise in employers' national insurance contributions, announced in October's budget and introduced in April.
A new survey by the BCC, one of Britain's big five business lobby groups, released before its conference of mostly small and medium-sized businesses, found that a third said they have either made staff redundant or are planning to as a 'direct result' of the increase. Shevaun Haviland, the BCC's director general, in her conference speech, pressed the government to commit itself to freezing business taxes.
In Starmer's charm offensive to the hundreds of delegates sitting before him in the vast conference room he gave no such commitment. But having unveiled the spending review for the parliament this month, as well as the industrial, infrastructure and, on Thursday, trade strategies, the prime minister said the government had shown a 'clear shift' to the 'next phase' of 'investing in the future of our country'.
He added: 'And that means that we have to back you to the hilt. Because your members are the engines of growth in every community across the United Kingdom.'
Monday's industrial strategy is underpinned by slashing the internationally uncompetitive costs of the economy's most intensive energy users and finally tackling the country's chronic skills shortage. The trade strategy includes a focus on pursuing smaller, faster trade deals with the likes of Brazil, Thailand and Kenya, rather than bigger free-trade agreements; closer ties with 'like-minded' nations such as Japan and Singapore; a £20 billion increase in the capacity of UK Export Finance, the government's credit agency for exporters, to £80 billion; and a consultation on anti-dumping measures for steel.
One senior business leader, speaking privately on the sidelines of the conference after Starmer's speech, said the prime minister 'really is listening. So I think that is all positive.' But they added, talking of the broader government: 'They don't quite recognise the impact of the taxes and national insurance impact. It is significant. I mean you can't just absorb those. You have to do something about it. It is impacting jobs.'
They said: 'Everybody in the room I talk to is making redundancies … so they're [ministers] going to have to do quite a lot of work on the productivity side of the balance sheet to offset what they did.'
On stage, in a conversation with Haviland, Thomas Woldbye, the chief executive of Heathrow, welcomed the chancellor's green light this year for a third runway at the airport, a big infrastructure project that could boost Britain's productivity. Woldbye said Heathrow was 'central' in 'facilitating and delivering' the government's trade, industrial and infrastructure strategies.
Heathrow is submitting its formal proposal to the government this summer and ministers are targeting planning permission this parliament. Woldbye said the chancellor's deadline was 'very, very ambitious' and required work on planning, as well as modernising the UK's airspace.
Another significant concern of business is the government's contentious Employment Rights Bill. Starmer told the conference: 'I get the concerns,' but declined to signal further concessions as officials work with business on the reforms. The workers' rights changes will introduce day-one rights, better access to flexible working, and hand greater powers to trade unions.
The prime minister said: 'Many people have recognised that a secure, protected workforce is good for business; drives up productivity.'
Jonathan Reynolds, the business secretary, who also attended the conference and the earlier breakfast with bosses, told reporters on the sidelines that he was 'absolutely certain' the government could address the 'two principal concerns' of business — probation periods and access to zero-hour contracts — 'not through any change of policy, but through our existing approach'.
• Workers' rights bill will stymie growth, not encourage it
The senior business leader, who was speaking privately, said to capitalise on the productivity benefits of artificial intelligence, businesses needed to restructure the workforce and operations, yet the employment rights reforms 'as far as I can see, freezes everything … you're going to get into a very complex process'.
Closing the conference, Kemi Badenoch, the leader of the opposition and former Conservative business secretary, reiterated that the Tories had lost the trust of business before last July's general election, but citing inflation, growth and unemployment, said Labour had since delivered 'change for the worse and it didn't have to happen'.
Taking aim at the employment rights reforms — a 'huge problem' — and business taxes, Badenoch said: 'The rise in national insurance is killing jobs. It is making it impossible for businesses to grow.'
Seeking to 'win back trust', she told delegates: 'We have to unleash the animal spirits of business.'
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Powys County Times
38 minutes ago
- Powys County Times
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He insisted there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system. 'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said. 'We want to see reform implemented with Labour values of fairness. 'That conversation will continue in the coming days, so we can begin making change together on Tuesday.' There was mixed reaction among charities to the prospect of concessions. Learning disability charity Mencap said the news would be a 'huge relief to thousands of people living in fear of what the future holds'. 'It is the right thing to do and sends a clear message – cutting disability benefits is not a fair way to mend the black hole in the public purse,' director of strategy Jackie O'Sullivan said. But the MS Society urged rebels to hold firm and block the Bill, insisting any Government offer to water down the reforms would amount to 'kicking the can down the road and delaying an inevitable disaster'. Head of campaigns at the charity, Charlotte Gill, said: 'We urge MPs not to be swayed by these last ditch attempts to force through a harmful Bill with supposed concessions. 'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.' The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government. Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment. 'Labour's welfare chaos will cost hardworking taxpayers. 'We can't afford Labour.'
Glasgow Times
an hour ago
- Glasgow Times
Government expected to unveil welfare Bill concessions after talks with rebels
Number 10 had been locked in crisis talks with backbenchers after some 126 MPs within the party signed an amendment that would halt the legislation in its tracks. On Thursday night, sources said a deal was being thrashed out between rebels and the Government as it seeks to head off the prospect of the Prime Minister's first Commons defeat in a crunch vote next week. The Government's original package restricted eligibility for the personal independence payment (Pip), the main disability payment in England, and limited the sickness-related element of universal credit. Existing claimants were to be given a 13-week, phase-out period of financial support in an earlier move that was seen as a bid to head off opposition by aiming to soften the impact of the changes. However, concessions offered by the Government to save the Bill from defeat are understood to include a commitment that those currently receiving Pip will continue to get the allowance. This would protect some 370,000 existing claimants who were expected to lose out following reassessment. Ministers had hoped the reforms would get more people back into work and save up to £5 billion a year, but fresh changes such as these would leave Chancellor Rachel Reeves needing to find money elsewhere. Rebels had also been calling for ministers to row back on a freeze in the health element of universal credit, which was expected to lead to a £450 real decline in support for some 2.2 million existing claimants. Sir Keir Starmer told MPs he wanted welfare reforms to reflect 'Labour values of fairness' (Stefan Rousseau/PA) It is understood that the Government has agreed to avoid such a reduction in support, as well as committing to a future consultation that would involve taking the views of disabled people about policy into account. The Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it. If the legislation clears its first hurdle, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill. Shadow chancellor Mel Stride said 'Labour's welfare chaos will cost hardworking taxpayers' (James Manning/PA) The Government had earlier said it was listening to suggestions to improve the legislation amid concerns about the swift timetable of the Bill. The so-called 'reasoned amendment' tabled by Treasury select committee chairwoman Dame Meg Hillier had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed. While the expected concessions look set to have reassured some of those who had been leading the rebellion, other MPs remain opposed. Speaking to the PA news agency, Rachel Maskell said: 'As the Government is seeking to reform the system they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation. 'I cannot vote for something that will have such a significant impact … as disabled people are not involved, it is just a backroom deal.' One MP said that ministers would need to 'go back to the drawing board' to make the Bill acceptable. Another said they expected the legislation would get through second reading if the Government conceded the key sticking points relating to existing Pip claimants, the health element of universal credit and a policy consultation. 'It would need to be in the Bill, not just a commitment,' they said. Speaking in the Commons on Wednesday, Sir Keir told MPs he wanted the reforms to reflect 'Labour values of fairness' and that discussions about the changes would continue over the coming days. He insisted there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system. 'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said. 'We want to see reform implemented with Labour values of fairness. 'That conversation will continue in the coming days, so we can begin making change together on Tuesday.' There was mixed reaction among charities to the prospect of concessions. Learning disability charity Mencap said the news would be a 'huge relief to thousands of people living in fear of what the future holds'. 'It is the right thing to do and sends a clear message – cutting disability benefits is not a fair way to mend the black hole in the public purse,' director of strategy Jackie O'Sullivan said. But the MS Society urged rebels to hold firm and block the Bill, insisting any Government offer to water down the reforms would amount to 'kicking the can down the road and delaying an inevitable disaster'. Head of campaigns at the charity, Charlotte Gill, said: 'We urge MPs not to be swayed by these last ditch attempts to force through a harmful Bill with supposed concessions. 'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.' The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government. Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment. 'Labour's welfare chaos will cost hardworking taxpayers. 'We can't afford Labour.'
Scottish Sun
an hour ago
- Scottish Sun
Major supermarket chain at risk of closing 34 stores after ‘struggling financially' in major blow to shoppers
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Locations at risk would include stores in Braintree, Chelmsford, Basildon, Thurrock and Southend among other locations, as well as two travel agencies. The society also operates branches in George Yard Shopping Centre in Braintree and Moulsham Street in Chelmsford. Chelmsford Star Co-op said it is "struggling financially" and needs to merge with the larger Central Co-op society. They claimed their issues have been "exacerbated" by increases in National Insurance contributions and the living wage. It comes as the two Quadrant stores are set to shutter in October later this year, with bosses blaming "long-term and increasing financial loss". Neither site has fetched a profit since 2008. Plans or a merger should be decided at meetings on July 16 and August 5. However, one member of Chelmsford Star Co-op, feared a merger would still see smaller store closures in villages and housing estates. 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Tony Price and Elaine Dean, presidents of Chelmsford Star and Central Co-op, added: 'Central Co-op and Chelmsford Star Co-operative are committed to putting the interests of our members first and supporting the communities where we trade. "The transfer will ensure that all members continue to have an important voice as part of a stronger, more secure Society - ready to serve them for many more years to come. "Both Boards are supportive of this transfer of engagements and the exciting opportunities that it presents.' OTHER CO-OP NEWS This comes as Co-op is rolling out a major change to stores across the country. The supermarket giant is replacing paper product tags with electronic labels throughout its whole estate over the coming months. The retailer has already made the change in 340 branches but will roll out the tags more widely. The chain said 1,500 stores will have the labels by the end of the year and will be rolled out across all its nearly 2,400 by the end of 2026. We have asked Co-op if all labels will be replaced with electronic ones in stores and will update this story when we've heard back. The electronic labels are designed and created by VusionGroup, which also works with Asda. Steven Logue, Co-op's head of operations, said: 'With convenience at the heart of everything we do Co-op is committed to continually exploring innovative technology that can improve how we operate." Co-op said the new electronic labels will show allergen and nutritional information and products' country of origin, as well as deals and savings. And, Co-op was one of a number of retailers hit by a cyber attack recently which saw supermarket stock and customer data affected. However, by May 14, the supermarket chain confirmed it was in a "recovery phase" and ready to turn online orders back on. Customers had been complaining of shortages of fresh produce, ready meals, yoghurts and confectionery since the incident began at the end of April. The attack also pushed contactless card payments offline in nearly one in 10 stores, forcing customers to pay with cash or enter their PINs at the till. The retailer also confirmed customers' private details were stolen during the attack after its IT systems were compromised. Some customers' names, contact information and dates of birth were exposed, however passwords, credit card details and transaction information were not.
