Businesses Tell Starmer to Talk to Them, Not the Regulators

Above: Starmer's Inheritance speech from August was described as a shower of gloom that rained down on sentiment.

"Asking civil servants to create an environment that fosters growth is absurd and shows how out of touch this government is with the businesses that power the economy."

Business owners have been left gobsmacked by news Prime Minister Keir Starmer has asked regulators for ideas to boost the UK economy.

"Asking regulators for growth ideas is like asking a vegetarian how they like their steak cooked," says Sam Alsop-Hall, Chief Strategy Officer at Woodrow Mercer Healthcare, which was named the second fastest-growing privately owned company in the UK last year.

He says Stamer should ask the entrepreneurs who drive the economy for ideas to boost growth. "My phone hasn’t rung once. Further proof that Keir & Co haven’t go a clue and have as much business experience as a goldfish running a tech startup."

It was reported last week that Starmer had written to the UK's main regulators asking them to come up with ideas for reform that could boost economic growth.

The move comes after official ONS data shows economic growth has plummeted since the new Labour government came to power, with two successive monthly GDP readings of -0.1% recorded for September and October.

"Asking civil servants to create an environment that fosters growth is absurd and shows how out of touch this government is with the businesses that power the economy. UK Plc is on red alert and to see the government turn to regulators to try to get it firing is another massive red flag," says Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management.

Starmer's letter was sent to the Environment Agency, the Financial Conduct Authority (FCA), and healthcare regulators.

Economists say businesses have been hit hard by the government's negative messaging on their economic inheritance, while the October budget statement saw billions in fresh taxes levied on businesses.

New minimum wage hikes and onerous employment laws are also set to come into force next year.

"If they want to give the economy a chance, then U-turning on some of the fiscal insanity announced in the Budget would be a good place to start. Having experienced business owners in pivotal Government roles would also help as it would drive more commercial thinking across departments," says Eatenton.

Kevin Drew, Managing Director at Ascentant Accountancy, says the Government should be consulting the FSB, CBI and Chambers of Commerce to advise on creating economic growth.

He explains these are the bodies that represent those who will create it.

"Increasing access to affordable funding for small businesses, incentives to upskill staff or take on apprentices and business rates or tax reliefs should be a priority for growing businesses. Incentives and support should be available for startups and new businesses to mentor them, support them and help them to grow, employ staff and contribute to their local economy and put revenue into Local Authority and Treasury coffers," says Drew.

Wes Wilkes, CEO at Net-Worth NTWRK, says we should be seriously concerned about the prospects for Britain's economy right now.

"We have a government that hammers business and entreprenurship with damaging fiscal policies then asks regulators for help on growth. No economy has ever regulated its way to growth. Why don't they ask businesses and entrepreneurs how to generate growth? They've got James Timpson as an adviser and John Caudwell as a huge donor so if they are supportive of this approach, then I worry for their reputation, too," says Wilkes.