Is Labour anti big-business...?

Labour have historically been for, well Labour, and not the most friendly of parties towards big business. This of course changed with Blaire, but now ti seems the relationship is frosting over again...

A Crisis of Confidence

In the run-up to every Budget it's normal for big business to bewail the possibility of higher taxes, demand fewer taxes and express fear of tighter regulations, but this time around, in the build up to our late November budget, the complaints run deep indeed, there seems to be a significant cultural gap between Westminster snd the Corporate sector.

Business leaders perceive an administration that is detached, dismissive, and disinterested in collaboration. The pre-election wooing has not been followed through. A sense of drift has set in, naturally not helped by the last budget which hit business with increased labour costs.

The Cost of Distrust

What Britain's CEOs want is stability, predictability, and consultation. Instead, they see policy made on the hoof, and officials out of touch with the realities of industry. Some of the FTSE 250's leaders are even under the impression that policy is being made in a bunker.

The government's challenge is to balance fiscal responsibility with an understanding of how policy plays out in real-world markets. Policy sends out global 'vibes' and every perception of instability or hostility makes it easier for capital to flow elsewhere.

The result is a vicious circle: economic forecasts deteriorate, business confidence declines, and ministers become even more defensive. As one FTSE chair said to Pratley, efforts to repair relations have “dribbled into the sand.”

Final Thoughts

I'm no fan of the government being too lenient on big business, I'm certainly no neoliberal, but possibly this kind of uncertainty is even worse than clear signals that are going to make it harder for business.

At least a clear message about tax rises or tighter regulation would give the private sector more certainty, rather than the uncertainty it resides in now...?!?