Support For Leftist Labour Gov’t Economic Agenda Plunges as Businesses Warn Tax Hikes Will Crush Growth

Support for the fledgling leftist Labour Party government’s handling of the economy has plunged amid growing concerns from the business sector that planned tax raids will threaten to derail promises of economic growth and the labour market.

Prime Minister Sir Keir Starmer’s promise to the public to prioritise economic growth appears to be on the ropes as a report from the Confederation of British Industry (CBI) said that a majority of its members are bracing for decline over the next three months.

The CBI highlighted the October budget of Chancellor Rachel Reeves, which included a staggering £40 billion in tax hikes, including £25 billion on businesses for national insurance contributions, as a driving factor in the loss of business confidence in the future of the British economy.

The left-wing Labour government has argued that tax raids are necessary to sure up public finances and to fund social welfare programmes such as the National Health Service (NHS).

The CBI’s interim deputy chief economist, Alpesh Paleja, said per The Guardian: “As we head into 2025, expectations for growth have taken a decisive turn for the worse. Our surveys suggest that anticipated activity was already weakening heading into the October budget, and the chancellor’s announcements have left businesses with even more tough choices to make.

“News that firms are planning to reduce headcount is a concern, with hiring intentions at their weakest since the tail end of the Covid-19 pandemic. This could be an early sign of the impact of higher labour costs from the upcoming rise in employer NICs, and the uprating in the national living wage.”

Meanwhile, the CBI also warned that up to 125,000 jobs may be slashed over the next five years as a result of Chancellor Reeves’ inheritance tax raid on companies with holdings of over £1 million.

The gloomy outlook from the business sector has been mirrored by a sharp decline in public support for the Labour government’s handling of the economy. According to a YouGov survey conducted for The Times, support for the government’s economic agenda has fallen by ten percentage points in less than a month.

The survey found that less than one in four voters think the government is doing a good job on the economy. Following her budget announcement in October, nearly half of the country (47 per cent) think that Chancellor Reeves is doing a poor job at handling the economy, up from 37 per cent prior.

Prime Minister Starmer has also been hit by the loss of confidence in the economy, with just 27 per cent saying that he is the best person for the job, compared to 32 per cent at the start of last month.

Perhaps most concerningly for the leftist government, support in the countryside for the Labour Party’s agenda has cratered, with 50 per cent of those in the most rural constituencies in England saying that they trusted the government less following the budget, and 60 per cent saying that the party had broken its promises to restore rural economies.

The drop-off may serve as a boon to Nigel Farage’s Reform UK party, which intends to challenge Labour in Brexit-backing areas of the country traditionally supportive of the left-wing party.

Reform UK Deputy Leader Richard Tice said in comments provided to Breitbart London: “The fall out from Labour’s budget attack on business continues to deepen. These reckless policies are undermining the backbone of our economy and punishing those who create jobs and drive growth.

“All of these policies threaten the UK’s prosperity and the livelihood of future generations. Reform UK will continue to stand up for family businesses, farms, and the communities they support.

“Labour have failed you. The Tories have failed you. Only Reform UK offers economic competence and real change.”

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