During the election, Labour proudly flaunted the backing of 120 prominent business leaders, using their endorsements to distance the party from the shadow of Jeremy Corbyn’s leadership.
But just five months later, Labour’s honeymoon with the business community appears to be over.
Following a contentious £25 billion tax hike unveiled under Starmer’s government, a recent report by City AM reveals that only 28 of the original 120 business backers still stand by the party.
A Crisis of Confidence?
The findings paint a damning picture of buyer’s remorse among Labour’s former supporters in the corporate world. Many business leaders who once championed Labour’s policies have remained conspicuously silent in the wake of the tax hike, which critics argue has stifled growth, reduced competitiveness, and placed unnecessary strain on employers already grappling with economic uncertainty.
The dramatic drop in support raises questions about the effectiveness of Starmer’s economic strategy and Labour’s ability to maintain relationships with key stakeholders. The party’s initial overtures to the business community—seen as a pivotal move to shed its Corbynite image—now appear hollow to many.
The Fallout from the “Jobs Tax”
Labour’s £25 billion tax increase, dubbed by critics as a “jobs tax,” has been widely condemned for placing undue burden on businesses, particularly small and medium enterprises. Analysts warn that the policy could deter investment, force companies to downsize, and exacerbate existing challenges in a fragile post-pandemic economy.
“This tax hike is a hammer blow to businesses already struggling to stay afloat,” said one business leader who previously supported Labour. “We were promised a pro-growth agenda, but this feels like a betrayal of that commitment.”
Holding Labour to Account
As Labour’s business support dwindles, there is growing momentum to hold the government accountable for policies many see as damaging to the economy and job creation. Campaigners are urging the public to sign petitions opposing Labour’s tax increases and to spread the word among friends and family.
“This is about more than just taxes—it’s about the future of our workforce and our ability to compete on the global stage,” said one campaigner. “Labour needs to understand that businesses are not just a source of revenue; they’re the lifeblood of our economy.”
A Warning for Labour
The rapid erosion of support from the business community serves as a stark warning for Starmer’s Labour. While the party may have succeeded in distancing itself from Corbyn’s legacy, its current trajectory risks alienating the very allies it sought to win over. Without a course correction, Labour will find itself increasingly isolated—both in Parliament and in the court of public opinion.
Please sign The Conservative Party petition against Labour’s jobs tax and share it with a friend or family member: CLICK HERE
