Before taking office last July, UK Chancellor of the Exchequer Rachel Reeves met business leaders over a series of breakfasts that became known as the smoked salmon and scrambled eggs offensive. British bosses were clamoring for change after 14 years of rule by the opposition Conservative party, and her pitch went down well.
But a year on from the Labour Party’s landslide election win, that initial optimism has been replaced by discontent over tax increases, persistent red tape and a lack of dialogue with the government. A spike in borrowing costs and a lack of economic growth haven’t helped matters. Companies say they are being forced to cut jobs, delay investment — and in some cases, move their listings altogether.
“I’m struggling to see what’s business-friendly so far,” said Bernard Fairman, executive chairman of Foresight Group, an infrastructure investment firm.
The government is faced with a balancing act — appeasing companies as well as the unions that help support the party financially; appealing to its traditional left-wing base while trying to win over Conservative supporters and voters who may be veering toward the populist Reform UK party. At the mome…