Britain’s Labour party came to power on a mandate to boost the UK’s underperforming economy. In its first five months in government it has made the task even harder by sapping the “animal spirits” of British businesses. Months of gloomy pronouncements before its inaugural October Budget had already damaged confidence. Far from repairing the damage, the Budget left employers reeling from the £40bn in tax rises it delivered — the bulk of which will be shouldered by them.
It needs the private sector to be driving job creation, investment and innovation, particularly as other elements of its agenda — including fixing public services and raising capital investment — take time to deliver a growth uplift. Labour ought to signal and prioritise plans in three main areas for the new year. First, it should streamline regulations that hinder business growth.