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

    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…

    Labour could lose ‘well over’ 1,000 councillors -elections continues, say top pollsters

    See more Daily Mail on Google – save us as a Preferred Source By CLAIRE ELLICOTT, WHITEHALL EDITOR Published: 20:14 EDT, 31 March 2026 | Updated: 20:34 EDT, 31 March…

    You Missed

    Quaint suburb in Maryland is rocked after their beloved cherry blossom trees were abruptly cut down overnight

    • By poster
    • June 9, 2026
    • 1 views
    Quaint suburb in Maryland is rocked after their beloved cherry blossom trees were abruptly cut down overnight

    Labor MP Ali France accused of committing electoral fraud for being enrolled to vote on a vacant block

    • By poster
    • June 9, 2026
    • 1 views
    Labor MP Ali France accused of committing electoral fraud for being enrolled to vote on a vacant block

    Portland professor sues university for $7 million after she was placed on leave over viral ‘I am Hamas’ video

    • By poster
    • June 9, 2026
    • 1 views
    Portland professor sues university for $7 million after she was placed on leave over viral ‘I am Hamas’ video

    Husband and wife both had sore backs and put it down to ‘kidney stones’. Turns out they had the same cancer

    • By poster
    • June 9, 2026
    • 1 views
    Husband and wife both had sore backs and put it down to ‘kidney stones’. Turns out they had the same cancer

    Father of ISIS bride insists she simply made a ‘mistake’ when she married a terror fighter at the age of 21

    • By poster
    • June 9, 2026
    • 1 views
    Father of ISIS bride insists she simply made a ‘mistake’ when she married a terror fighter at the age of 21

    Girl, 14, was enjoying evening walk through her leafy Midwest neighborhood… then a stranger in a black car pulled up alongside her and horror ensued

    • By admin
    • June 8, 2026
    • 2 views
    Girl, 14, was enjoying evening walk through her leafy Midwest neighborhood… then a stranger in a black car pulled up alongside her and horror ensued