𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves and Sir Keir Starmer face dire new figures as businesses reel from extra costs as a result of its “punitive” policies. A survey by the London Chamber of Commerce and Industry found that just a quarter (25%) of 504 London businesses that responded expect the capital’s economy to improve in 2026. Meanwhile, more than half of business owners (53%) expect to have to raise prices to meet rising business costs.

In addition, only a quarter (25%) of London’s businesses engaged in recruitment activity in Q4, down from over a third (34%) in Q2, and the share of London businesses reporting increased plant and equipment investment fell sharply to 18%, down from 25% in Q3.

Karim Fatehi OBE, Chief Executive Officer of the chamber slammed the Government’s approach, saying: “Record low business confidence under this government is bad news for the Prime Minister, bad news for the economy, and bad news for the country.

There is no economic growth unless businesses have the stability and confidence they need to take risks, invest, hire and expand.”

He added: “At the end of a tough year London businesses needed certainty from the Budget after last year’s tax rises but the only certainty they received was higher costs. Rather than making tough decisions on public spending, the Chancellor shifted the burden onto businesses and the public.

“This was followed swiftly by the Employment Rights Act receiving Royal Assent after only modest, albeit welcome, changes to make it more workable for businesses.”

The Government was warned by businesses in October that this legislation – spearheaded by Angela Rayner – inflict “significant damage” to the economy.

“Without amendment, this bill will cause significant damage to employment and growth in this country, running counter to the Government’s plans to tackle rising economic inactivity,” a letter by the Federation of Small Businesses and signed by 12 other business groups seen by The Telegraph read.

Rachel Reeves has also been slammed after increasing national insurance contributions for employers.

Mr Fatehi said: “Employment protections are vital but the balance of power has tipped too far the other way and employers are increasingly reluctant to hire as they face greater costs and risks.

“The government’s new year’s resolution for 2026 must be to listen to businesses- the job-creators, taxpayers, and innovators we’re relying on to rebuild the economy.

“Stop weighing them down with increased costs and regulation, and give them the confidence they need to grow.”