Business advocacy groups have criticized the failure to curb the rise in national insurance
Britain’s top business groups, collectively known as the “B5,” have faced criticism for failing to prevent a major increase in employers’ national insurance contributions, announced in Rachel Reeves’ October budget.
The £25 billion increase has caused widespread backlash from businesses, with some questioning the effectiveness of the Confederation of British Industry (CBI), British Chambers of Commerce, and others in representing the interests of companies, particularly small and medium-sized enterprises (SMEs). ).
Steve Morley, president of the Confederation of British Metalforming, accused B5 of being “too loose” with government officials and “careless” in their communication. “Given them direct access to Whitehall, their failure to deliver business leaves them looking desperate,” he said.
The budget has been widely criticized for undermining employment and investment plans, particularly in the manufacturing sector which is already facing challenges such as declining sales of electric vehicles and stricter emissions targets. Morley warned that the “extra burden” on SMEs could dampen confidence in Labour’s proposed industrial strategy.
The government’s consultation on the industrial strategy, which focuses on the eight most productive sectors, has raised hopes of long-term support, but Morley has urged that the voices of SMEs are better represented in shaping future policies.
Although B5 declined to comment, Roger Barker, director of policy at the Institute of Directors, defended his organisation’s efforts, saying it had been “very serious” about the budget’s impact on businesses. Rupert Soames, chairman of the CBI, recently described the government’s treatment of businesses as treating them as “a cow to be milked.”
As the government begins to assess responses to its industrial strategy proposals, pressure is mounting on business groups to prove their worth in representing industries facing rising costs and regulatory challenges.
