Kemi Badenoch criticized the government for “doubling down” on the Conservatives’ mistakes while addressing the Confederation of British Industry’s (CBI) annual conference.
The Leader of the Opposition remarked that the full impact of the Budget, which introduced £40bn in tax increases, including a £25bn hike in National Insurance for employers, is still uncertain. She also expressed concerns over the Government’s Employment Rights Bill, describing it as being “designed by trade unions.”
Badenoch acknowledged the appeal of Labour’s charm offensive toward businesses last year, stating, “I understand why business leaders were drawn to Labour’s ‘prawn cocktail or smoked salmon’ diplomacy—they anticipated our loss and felt the last government didn’t grasp their concerns or priorities.”
Speaking to business leaders in London, she admitted past Conservative mistakes, saying, “We got things wrong, and unless we identify where, we risk repeating those errors. My father, a GP, always said if you misdiagnose the problem, the treatment won’t work. I fear that’s what’s happening in the UK now.
We haven’t addressed the root causes of our challenges. Labour isn’t just repeating our errors; they’re doubling down and adding an unprecedented tax raid on businesses.”
Chancellor Rachel Reeves is set to address the conference later. Her decision to increase employer National Insurance contributions from 13.8% to 15% and lower the salary threshold for contributions from £9,100 to £5,000 has drawn criticism.
CBI chief executive Rain Newton-Smith warned in her opening speech that these changes have forced businesses into “damage control” mode, adding, “Tax rises like this must never again be imposed on businesses without proper consideration.”
