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Sir Keir Starmer sought to win over a gathering of Britain’s top bosses on Wednesday, reassuring them of the government’s stability despite being embroiled in a self-made leadership crisis.
A day after disastrous briefings by Downing Street that had been intended to show the prime minister would fight any challenge to his leadership, he pressed on with hosting evening drinks that were designed to offer a dose of comfort to UK plc.
While Britain’s leading bosses did not expressly address the Westminster leadership briefing war, there was a clear message to the government that it had to reduce uncertainty and offer more clarity on its fiscal policy.
With a crucial budget just two weeks away, the mood within Number 10 was “resilient” and “much better than expected given events”, several executives noted. They said that Starmer was “on good form” and the “most engaging he has been with business” at the event, which was organised a week ago.
Chief executives at the intimate event at Number 10 included Tesco’s Ken Murphy, NatWest’s Paul Thwaite, Simon Roberts of Sainsbury’s, Jennie Daly of Taylor Wimpey, Greg Jackson of Octopus, Steve Hare of Sage, Chris O’Shea of Centrica and Zoë Yujnovich of National Grid.
The prime minister told his guests that business was key to the government’s growth agenda and there were said to be “constructive, grown-up” discussions on how firms could work closer to support the government and economy.
Businesses have been warning that the mixed messaging on various policies ahead of the late Budget on 26 November has dented confidence. Starmer and his chancellor Rachel Reeves are preparing policies to fix a hole in the public finances estimated at up to £30bn.
It was noted that the closed door meeting, which discussed “practical solutions” for the economy, contrasted with previous business engagements at Downing Street that were seen as little more than government photo opportunities rather than real discussions about issues such as employment rights.
Despite the event being so close to the Budget, the chief executives are said to have toned down their lobbying amid polite discussion on regulatory reform.
Murphy and Roberts, the supermarket chiefs, have lobbied hard for the government to overhaul the business rates system and remove retailers from the top band of the property levy. However, neither have been as vocal as Marks and Spencer chief executive Stuart Machin who has urged the chancellor to change course altogether.
Octopus’s Jackson has also backed calls for the chancellor to prioritise lowering electricity bills at the Budget. Centrica’s O’Shea meanwhile wants the government to support its North Sea Rough storage facility as a way of boosting the UK’s energy security.
Aides within the Treasury have previously asked bosses and some business lobby groups to tone down their negative rhetoric to “stop talking the economy down” while asking others to be vocally supportive.