Britain faces “economic disaster” and the death of the family business if Labour continues to pursue “anti-growth” policies, the chairman of the Independent Business Network (IBN) has warned. John Longworth, writing in a Budget submission, urges a radical change of course and makes the case that rejoining the European Union – a long-term possibility floated by Andy Burnham – would be “insanity”.
In a damning assessment of Labour’s record in power, he said: “There appears to be a blind attachment in the corridors of power to tax and spend, and to ideological policies such as net zero, the direct attack on property ownership and inheritance, and welfare profligacy. A continuation of this approach risks economic disaster and the demise of family businesses. Rather than address the real issues of government policy and the economy, the Prime Minister has chosen instead to pursue rejoining the European Union, raising false hope that this would solve Britain’s problems. It would introduce years of uncertainty and conflict. Quite apart from the enormous cost of such a policy, tying the UK to a failing economic model would be most unlikely to boost our fortunes. It is such insanity that the only rational explanation is that it is a ‘weapon of distraction’, designed to divert attention from the absence of both leadership and economic growth that besets our government.”
The IBN is calling for a reversal of the hike in employers’ National Insurance introduced by then-Chancellor Rachel Reeves as well as the preservation of zero hours contracts. It states in its submission to the Treasury: “For family businesses, flexible hiring can create an entry point into employment. A restaurant owner who needs help on busy weekends may be willing to train an inexperienced local applicant for a small number of shifts. If trade grows, that person may gain more hours and eventually move into a regular role.”
Alongside VAT reforms, it is calling for loans for young entrepreneurs. “Britain should give young people a fair chance to turn skill and initiative into a business, whether or not their families can write the first cheque,” the IBN states.
Brendan Chilton, the organisation’s chief executive, said: “We believe that family-owned and family-run businesses must have a greater voice in public policy and can thrive outside the EU. One of the primary reasons for leaving the European Union was to ensure that we had the ability to create the most dynamic and competitive environment for businesses and start-ups. We also left the European Union so that we could embark on our own trade deals, securing advantages for British businesses, access to new markets and flexibility to help with the cost of living. We must not reverse that decision, and the Independent Business Network will fight for our sovereignty and for maintaining our independence outside the EU.”