UK bosses slam Westminster turmoil

{"text":[[{"start":6.15,"text":"Bosses of some of Britain’s biggest companies have voiced dismay at the turmoil in Westminster, warning that uncertainty over Sir Keir Starmer’s future is putting at risk investment decisions and the country’s reputation. "}],[{"start":19,"text":"Chief executives told the FT that calls for the prime minister to quit, Wes Streeting’s resignation and Andy Burnham’s move to return to parliament were a far cry from the stability and certainty promised by the ruling party before the 2024 general election."}],[{"start":34.2,"text":"One FTSE 100 chief executive said the government had over the past week “myopically focused on its own infighting and scandals, rather than focusing on the long-awaited action it should be delivering”."}],[{"start":46.45,"text":"Another chief executive said days of jeopardy for Starmer since Labour suffered dire losses in local and devolved elections amounted to a “lost week in terms of any progress on objectives”."}],[{"start":58.650000000000006,"text":"Former J Sainsbury boss Justin King accused ministers of failing to learn “the lessons of the last years of the Conservative administration”. "}],[{"start":66.95,"text":"“Nero fiddles . . . ,” remarked a second FTSE 100 boss, referring to the emperor who, according to the expression, watched Rome burn while playing a musical instrument. "}],[{"start":80.2,"text":"The person added that while it was in UK plc’s interests for the government to succeed, particularly in the eyes of international investors and bond markets, “the current environment hurts everyone”."}],[{"start":91.5,"text":"The dismay over the state of the Labour administration caps a chaotic week in which as possible successors to Starmer have jockeyed for position even as the prime minister refused to step aside."}],[{"start":104.15,"text":"Blairite health secretary Streeting on Thursday resigned his post but stopped short of launching a leadership bid. Hours later, the leftwing Greater Manchester mayor Burnham said he would campaign for a newly vacated seat that could offer him a route to Downing Street."}],[{"start":120.35000000000001,"text":"Some bosses raised concerns that long-awaited legislation, such as the enhancing of the financial services bill as announced in the King’s Speech, could be disrupted as a result of the leadership battle."}],[{"start":132,"text":"Jono Gillespie, chief executive of consumer lender Evlo, said: “It’s difficult to know how a leadership election could affect the legislative timetable, or even whether a potential new leader would want to go back to the drawing board.”"}],[{"start":145.45,"text":"Chancellor Rachel Reeves on Thursday welcomed official figures showing the economy expanded 0.6 per cent in the first quarter, warning MPs that it was “not the time to put our economic stability at risk”."}],[{"start":null,"text":"

"}],[{"start":158.25,"text":"But Sir Martin Sorrell, executive chair at advertising group S4 Capital, said the fact that Starmer was “hanging on by his fingernails” was damaging the UK’s reputation."}],[{"start":169.95,"text":"“People abroad must think it’s a comic convention. Business has enough volatility already with war in the Middle East, tensions between the US and China, and Russia and Ukraine,” he added. "}],[{"start":180.79999999999998,"text":"Labour launched a charm offensive to woo business in the run-up to the 2024 election, with vows to make Britain a more attractive investment destination."}],[{"start":190.54999999999998,"text":"But bosses and the bond markets now are braced for not just protracted instability but also the policy implications of a new prime minister, and possibly a new chancellor."}],[{"start":203.24999999999997,"text":"Several executives raised Burnham, who last year proposed tax rises on the wealthy, mass nationalisation and a big increase in borrowing, as the most worrying potential leadership candidate. "}],[{"start":214.54999999999998,"text":"One FTSE 100 chair said: “The general view that I share . . . is that we should keep Starmer, and keep Reeves. Yes, there have been challenges and policies that are frankly anti-business but the alternatives look more destructive to the economy.”"}],[{"start":null,"text":""}],[{"start":230.74999999999997,"text":"Echoing that view, Francesca Carlesi, chief executive of Revolut UK, whose push to gain a banking licence was backed by Reeves, said it was an “important time to maintain stability within Treasury” in order to enable the government’s “positive programme of work”. "}],[{"start":245.69999999999996,"text":"Theo Paphitis, owner of the Robert Dyas and Ryman retail chains, criticised the prospect of Labour MPs who were “totally inexperienced, naive in business and ideologically overqualified . . . catapulting themselves into the top job in the country”."}],[{"start":260.94999999999993,"text":"“If the government is even more left-leaning, then it will create nothing but mayhem,” added Paphitis, noting that he switched from the Tories to Labour at the last election “because of the psychodrama”. "}],[{"start":273.49999999999994,"text":"Sir William Sargent, chair of visual effects company Framestore, who was one of the business leaders who signed a letter backing Labour before the election, expressed his dismay at the situation."}],[{"start":283.99999999999994,"text":"“The UK is throwing away its opportunity to be a haven of political stability, a leader in the development of new AI-driven economic growth,” he said. “I am disappointed at what the 2024 election offered as an opportunity.”"}],[{"start":298.74999999999994,"text":"Steve Rigby, chief executive of tech company Rigby Group, cautioned against “further regulation and further increases in minimum wage”, which business has said has led to cuts to headcount since Labour took office. "}],[{"start":311.69999999999993,"text":"“We need to ensure life isn’t sucked out further from the economy and for the government to realise that it needs business and its investment to deliver growth,” he added. "}],[{"start":null,"text":""}],[{"start":321.5999999999999,"text":"Brian Duffy, head of FTSE 250 retail group Watches of Switzerland, called for “stability”, stressing that businesses wanted the “party in charge to stop fighting among themselves . . . and to get on with delivering what they set out in their manifesto”."}],[{"start":338.3499999999999,"text":"Capturing the view of many business leaders, Allan Leighton, chair of supermarket chain Asda, said it was unclear if a change of prime minister “would make any difference, because it’s about the policies that fuel growth”. "}],[{"start":353.0499999999999,"text":"“I don’t think it’s possible to have policies that restrict growth more than the current situation,” he added. "}],[{"start":359.3999999999999,"text":"King, who is also chair of National Lottery owner Allwyn UK, said: “A swift resolution [to doubts around Starmer’s future] is needed if businesses, domestic and international, are to have the confidence to invest to drive the growth and job creation the country desperately needs.”"}],[{"start":375.24999999999994,"text":"Despite warnings that UK borrowing costs could rise if Labour shifts to the left, Richard Lightburn, deputy chief investment officer at US macro hedge fund MKP, said a new prime minister “doesn’t necessarily have to be worse for markets”. "}],[{"start":389.24999999999994,"text":"“Even the left is cognisant of market concerns and will hopefully be mindful so that we don’t have another Liz Truss situation,” he added, referring to the 2022 “mini” Budget that spooked traders and ended her premiership after just 49 days. "}],[{"start":405.34999999999997,"text":"Additional reporting by Costas Mourselas "}],[{"start":414,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778841307_8095.mp3"}