Britain’s main lobby groups, collectively known as the “B5”, have been criticized for failing to prevent a significant increase in employers’ national insurance contributions announced in Rachel Reeves’ October budget.
The £25 billion increase has led to widespread backlash from businesses, with some questioning the effectiveness of the Confederation of British Industry (CBI), the British Chambers of Commerce and others in representing the interests of businesses, particularly small ones to medium-sized enterprises (SMEs). ).
Steve Morley, chairman of the Confederation of British Metalforming, accused the B5 of being “far too cozy” with government officials and “naive” in their advocacy. “Given their direct access to Whitehall, their inability to deliver makes them look cheated at best,” he said.
The budget has been widely criticized for undermining employment and investment plans, especially in manufacturing sectors already facing challenges such as falling electric vehicle sales and emissions targets. Morley warned that the “additional burden” on SMEs could undermine optimism around Labour’s proposed industrial strategy.
The government’s consultation on an industrial strategy, targeting eight high-productivity sectors, has raised hopes of long-term support, but Morley called for the voice of SMEs to be better represented in shaping future policy.
While the B5 declined to comment, Roger Barker, director of policy at the Institute of Directors, defended his organisation’s efforts, saying it was “highly critical” of the budget’s impact on business. Rupert Soames, chairman of the CBI, recently described the government’s treatment of companies as ‘a cow that needs to be milked’.
As the government begins to assess responses to its industrial strategy proposals, pressure is mounting on business groups to prove their worth in advocating for industries facing rising costs and regulatory challenges.