Business leaders have launched a fierce attack on Prime Minister Keir Starmer following his assertion at yesterday's British Chambers of Commerce conference that Labour had "stabilised the economy".
The Prime Minister told the London gathering that his Government had achieved economic stability and was backing businesses "to the hilt", whilst promoting his administration's trade deals with the US and India.
However, his optimistic assessment was met with immediate pushback from company bosses and economic experts who pointed to mounting evidence of business distress.
The criticism came as new data revealed the severe pressures facing British firms, with many struggling under the weight of recent tax increases, particularly the Chancellor's National Insurance hike announced in the autumn Budget.
Pimlico Plumbers founder Charlie Mullins condemned the Prime Minister's speech, saying: "I can't believe Starmer has the brass neck to stand in front of hundreds of struggling business owners and tell them he's on their side.
"It's only been a year and Labour's vicious NI hike and tax increases aimed at wealth creators have battered businesses."
Keir Starmer slammed over 'nonsense' claim he 'stabilised economy'
GB NewsKarl Mason, spokesman for the UK Spirits Alliance, dismissed Starmer's trade deal claims as a "nonsense narrative", arguing that "the punishing tax burden we face at home makes it virtually impossible to invest in export growth.
"Without reform to our domestic tax regime, talk of trade deals is meaningless."
The backlash highlighted growing frustration amongst business leaders over the Government's economic policies.
The Prime Minister's claims were contradicted by stark economic data released yesterday. The Office for National Statistics revealed that 17 per cent of businesses have run out of cash, marking the worst figure since the pandemic.
Retail performance painted an equally bleak picture, with the Confederation of British Industry reporting that sales fell this month at the fastest pace since January 2024, representing the ninth consecutive month of decline.
Bank of England governor Andrew Bailey, speaking at the same BCC conference after Starmer's appearance, warned that firms across the country were slashing jobs and wages as a direct result of Chancellor Rachel Reeves' National Insurance hike.
The Office for National Statistics revealed that 17 per cent of businesses have run out of cash, marking the worst figure since the pandemic.
GETTYThese figures undermined the Prime Minister's assertion that his Government had created economic stability.
Economic experts offered damning assessments of the Government's performance. Julian Jessop, economics fellow at the Institute of Economic Affairs, stated that "very little has changed for the better" under Labour.
He detailed multiple economic failures: "Underlying economic growth remains sluggish, inflation is picking up again, the labour market is deteriorating, interest rates have fallen more slowly than elsewhere, and the public finances are as fragile as ever."
The backlash highlighted growing frustration amongst business leaders over the Government's economic policies
GETTYJessop added that "businesses are struggling under the weight of high energy prices and additional payroll costs, and many are nervous about the extra burdens that will be imposed by the Employment Rights Bill. Other than that, it is all going swimmingly."
A leading economist also warned that Starmer must confront Labour rebels by cutting welfare spending or face choosing between another tax raid or bond market turmoil.
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