Labour accused of ‘shocking’ lack of understanding of business, by CBI boss

By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR

Updated:

The head of the CBI has accused Labour of a ‘shocking’ lack of understanding of business.

Rupert Soames said members of the government found it hard to put themselves ‘into the shoes’ of running companies.

And he said he had never been taken in by Labour’s so-called prawn cocktail offensive when the party wooed bosses ahead of the election.

The comments come days after official figures showed the economy shrank in October in the latest blow to the government’s faltering growth hopes.

Soames said Labour failed to understand the difficulties involved in employing people

Keir Starmer has claimed that growth is Labour’s number one mission but business leaders have become increasingly alarmed as the party piles on tax hikes and prepares to impose new workers’ rights on employers.

Soames, who is outgoing chairman of the Confederation of British Industry, told the BBC: ‘When I go and meet MPs and ministers I find it really, really shocking how little understanding they have of the world of business.’

He suggested that Labour politicians often descended into a cynical ‘they would say that wouldn’t they’ view of business leaders’ opinions who they believe are ‘incapable of being anything other than rampant capitalists’.

Soames added: ‘I do sense that this government is one that finds it hard to put itself into the shoes of large and medium size and small businesses.’

He said ministers failed to understand the difficulties involved in employing people.

‘It does disappoint me that on one hand the government has very few people who have worked in business in a way that has involved them employing people and understanding that and on the other hand they translate that into saying, we won’t listen to the people who have.’

Soames said that he ‘never believed’ in Labour’s pre-election charm offensive unlike other ‘business people who were seduced by the prawn cocktail circuit’.

He added: ‘I sat in countless meetings where shadow ministers were sitting there with their notebooks and dutifully taking down on the pearls of wisdom that were coming from business people. 

‘I don’t think they were really listening at all. A lot of that was in my view quite performative.’

DIY INVESTING PLATFORMS

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

Investing Isa now free on basic plan

Freetrade

Investing Isa now free on basic plan

Freetrade

Investing Isa now free on basic plan

Free share dealing and no account fee

Trading 212

Free share dealing and no account fee

Trading 212

Free share dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you

Read More

  • Related Posts

    Fugitive accused of murdering 90s rock musician at the height of his fame is finally CAUGHT hiding overseas

     To get a free exclusive article on one of the worst ‘house of horrors’ in history, sign up to our free newsletter HERE By JAMES CIRRONE, US NEWS REPORTER Published:…

    Labour minister who quit over journalism smear scandal says he was ‘honest and truthful’ but resigned because he was a ‘distraction’ for the government

    A Labour minister who quit over a journalism smear scandal has said he was ‘honest and truthful’ but resigned because he was a ‘distraction’ for the government.  Josh Simons, who…

    You Missed

    Woke activist says ‘there’s no such thing as white face’ as she laughs off offensive Erika Kirk parody… and mocks stricken widow for ‘dressing like Janet Jackson’

    Woke activist says ‘there’s no such thing as white face’ as she laughs off offensive Erika Kirk parody… and mocks stricken widow for ‘dressing like Janet Jackson’

    Furious backlash forces Green leader Polanski to apologise for sharing criticism of Golders Green police… but he still insists there should be ‘reflection’

    Furious backlash forces Green leader Polanski to apologise for sharing criticism of Golders Green police… but he still insists there should be ‘reflection’

    Banned BMW driver who killed his girlfriend in 136mph police chase crash while 14 times drug-drive limit is jailed for more than 12 years

    Banned BMW driver who killed his girlfriend in 136mph police chase crash while 14 times drug-drive limit is jailed for more than 12 years

    Why Jeffrey Epstein took suicide-victim son of ‘peace diplomats’ under his wing, lavishing him with cash, career advice and a $5million inheritance

    Why Jeffrey Epstein took suicide-victim son of ‘peace diplomats’ under his wing, lavishing him with cash, career advice and a $5million inheritance

    Trump rages at Iran’s latest peace offering as Tehran secretly passes mystery proposal through Pakistan

    Trump rages at Iran’s latest peace offering as Tehran secretly passes mystery proposal through Pakistan

    Reform pledge to build dozens of new immigration centres in areas that vote Green

    • By admin
    • June 30, 2026
    • 4 views
    Reform pledge to build dozens of new immigration centres in areas that vote Green