In a decisive speech at the British Chambers of Commerce (BCC) conference, Labour’s shadow business secretary, Jonathan Reynolds, outlined the party’s stance on the UK’s economic future.
Reynolds emphasized that Labour prefers stability in the UK’s relationship with Europe over the pursuit of accelerated economic growth through rejoining the EU’s single market or customs union.
Addressing the conference in London, Reynolds acknowledged the significant challenges Brexit has posed for businesses, citing the trade barriers that have complicated operations.
However, he asserted that reopening the Brexit debate would create more harm than good. With the general election just days away, Reynolds aimed to win over business leaders by promoting policy stability and encouraging investments.
Reynolds’ Conservative counterpart, Kemi Badenoch, was scheduled to address the conference later in the day. The timing of these speeches underscores the importance of the business vote in the upcoming election.
Several business leaders and economists have voiced concerns that Labour’s plans to boost the economy might falter without enhanced access to EU trade. They argue that such access is crucial for funding improved public services.
However, Reynolds countered that revisiting the Brexit debate would be economically damaging, as it would lead businesses to delay investments further.
“You could not relive the argument and provide people with the assurance they need that we are moving to a period where British politics is going to be in a stable position rather than frankly causing you more difficulties.”
Jonathan Reynolds
He emphasized that practical, trade-based agreements are preferable to contentious debates over customs unions or single markets.
Shevaun Haviland, the BCC’s director general, urged political parties to stop “walking on eggshells” and strive to improve the UK’s relationship with Europe.
She highlighted the need for alignment in food and drink regulations, VAT, and mutual recognition of professional qualifications. Nonetheless, she concurred with Reynolds, noting that businesses do not favor renegotiation.
Amanda Blanc, CEO of FTSE 100 insurer Aviva, expressed both concern and optimism at the conference.
While acknowledging the “weariness and cynicism” pervading the economy, she remained hopeful that stable public policy post-election would facilitate business investment and economic growth.
Labour’s Evolving Relationship with Business
Reynolds pointed out that Labour’s current approach contrasts sharply with its 2019 election strategy under Jeremy Corbyn.
He stressed that the party’s improved relationship with the business community is a clear sign of Labour’s transformation since the last election.
However, the shadow business secretary faced criticism from some business owners regarding Labour’s proposed worker rights policies.
Fintan and Alison Galvin, leaders of the Surrey-based software company Inv Group, expressed concerns that Labour’s pledge to provide statutory sick pay and parental leave from the first day of employment could increase hiring risks.
Alison Galvin remarked, “It seems very anti-business. All of a sudden to have this potential curveball … You’ve got your probation period, but then after that what does that all look like?”
Her husband Fintan added, “To grow a business you’ve got to take risks. Anything that enhances a risk profile of employing a person is bad.”
Reynolds responded by inviting the Galvins to meet with him to discuss their concerns, asserting that Labour’s policies would not negatively impact their recruitment practices.
Throughout the election campaign, Labour has largely avoided surprise policy announcements, sticking to longstanding positions. Reynolds defended this strategy against critiques of running a lackluster campaign. “I’m told by some commentators they don’t think Labour’s campaign is exciting enough,” he said.
“Look, my friends, we’re not pitching you a new Netflix series, you know, we’re not putting on politics as entertainment.”
Jonathan Reynolds
As such, Labour’s emphasis on stability and pragmatic economic policies aims to resonate with business leaders and the broader electorate, hoping to secure a more stable future for the UK’s economy.
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