Challenges for Labour's Business Relations

Labour's relationship with big businesses has significantly altered, especially as Rachel Reeves attempts to present her party as the friend of business. Initially, businesses showed enthusiasm for Labour's plans, particularly when Reeves announced that corporation tax would not increase in the first parliament if Labour won. However, changes in the recent Labour budget and rises in national insurance for employers have created a sense of betrayal among business leaders. This shift is evident at the Confederation of British Industry Conference, where Reeves faced a frosty reception and criticism for the national insurance hikes leading to warnings of potential job losses.