Keir Starmer speaks to the British Chambers of Commerce (Image: Getty)
A senior business leader slammed Labour for destroying jobs in a damning speech delivered just hours after Sir Keir Starmer spoke at the same event. Shevaun Haviland, Director General of the British Chambers of Commerce, said tax rises were “paralysing growth” and forcing employers to cut investment - with one in three making staff redundant or considering it.
She accused the Treasury of “demanding that business plug the black hole in its finances”. The business boss, previously a senior civil servant, issued the verdict in an address to the Global Annual Conference 2025 of the British Chambers, which represents firms across the country.
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The comments came after Sir Keir spoke to the same gathering and said: “We have asked a lot of you.”
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Ms Haviland praised the Government’s trade deals with India, the EU and USA, and welcomed a trade strategy published this week. But she highlighted increases to employer National Insurance contributions imposed by Chancellor Rachel Reeves, and new employment laws making it easier forstaff to go on strike or take employers to a tribunal.
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She said: “The reality of British business is hard, it’s relentless, it’s knackering, it’s being endlessly creative, its seven days a week, and it’s absolutely essential for the UK’s future prosperity.
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“So, it’s not been helped by the Treasury demanding that business plug the black hole in its finances. The size and scale of the rise in National Insurance Contributions took businesses by surprise.
“We were unprepared for the huge burden placed upon us, and it led many of us to rethink our growth plans. As a result, our business confidence measures have fallen to their lowest levels since 2022.
“More worryingly, a third of firms we recently surveyed told us they have either made staff redundant or are considering it. One third. Think about the impact that will have on your local communities, and the economy.”
She added: “And this is not just about tax. The Employment Rights Bill is rumbling down the track with a ￡5bn price tag for business.”
Ms Haviland said: “The government needs to use the tax system to incentivise growth, not kill it. Increased taxation is paralysing business.”
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Earlier, Sir Keir Starmer acknowledged the burdens that had been placed on businesses after the Government hiked taxes.
He said firms were responsible for “creating the jobs, the wealth, the tax receipts that means that we have the opportunity to change our country for the better”.
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The Prime Minister told the British Chambers of Commerce conference: “I fully acknowledge, and I do acknowledge here, that this year, as we’ve had to fix the foundations of our country, deal with the unprecedented mess that we inherited, we have asked a lot of you. I understand that and I want to acknowledge that.
“It has made a huge difference. Because of it, the money has gone into the NHS and waiting lists are coming down. We have put investment into the skills of our young people, the new homes, new roads, new infrastructure that we’re building, they are all vital for the long-term growth of our country.
“But none of that would have been possible without your contribution. And I say thank you. It’s what I mean by partnership.”