Labour is 'scaring off' big business: Bosses reveal sudden collapse in confidence over UK economy as tax rises and workplace reforms loom

Business confidence is collapsing under Labour, bosses warned last night. Sir Keir Starmer and Chancellor Rachel Reeves have been making downbeat statements on the economy that risk becoming a self-fulfilling prophecy Ministers have fuelled speculation about higher taxes on wealth and investment, including hikes to capital gains tax and inheritance tax Commons leader Lucy Powell refused to rule out a hike in employers' National Insurance contributions in the Budget, despite warnings it would destroy job creation. Tory business spokesman Kevin Hollinrake said: 'It's becoming increasingly clear that, far from pursuing their manifesto pledge of a 'stable policy environment' for businesses, Labour's tidal wave of workplace reforms and forthcoming tax rises are already denting business confidence in the UK, jeopardising growth and the resilient economy they inherited. Commons leader Lucy Powell refused to rule out a hike in employers' National Insurance contributions in the Budget, despite warnings it would destroy job creation Tory business spokesman Kevin Hollinrake said: 'It's becoming increasingly clear that, Labour's tidal wave of workplace reforms and forthcoming tax rises are already denting business confidence in the UK' Mr Hollinrake said Rachel Reeves' attempt to blame her decision to raise taxes in October on her economic inheritance from the Conservatives 'will not wash with the public' 'The Chancellor's attempt to blame her decision to raise taxes in October – tax rises she had always planned – on her economic inheritance will not wash with the public. Sir Martin Sorrell, the City grandee and chief executive of marketing firm S4 Capital, acknowledged that ministers had 'very little wiggle room' in balancing the books Lord Bilimoria, the Cobra beer founder and former president of the Confederation of British Industry, takes part in a question and answer session with Sir Keir Starmer in 2021 Tech investor Brent Hoberman, the co-founder of booking website lastminute.com, said he was already seeing 'people holding off plans for UK investment and moves due to budget fears' Writing in the Observer, Ms Reeves warned again that there would be 'more tough choices on spending, welfare and tax at the Budget' Under Labour's workers' rights agenda, which has been championed by Deputy Prime Minister Angela Rayner, staff will have the right to demand 'flexible working', including from home Labour MP Lucy Powell yesterday made the incredible claim that the economic situation was so dire that Britain could have faced a 'run on the pound' if Ms Reeves had not axed winter fuel payments for 10 million pensioners – a measure which will save only around £1.5 billion.