Skip to content
Thursday 13 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,833.15
-0.10%
DAX
26,331.07
-0.23%
CAC 40
8,674.94
0.00%
STOXX 50
6,533.99
-0.26%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Monday 11 November 2024 6:00 am  |  Updated:  Monday 11 November 2024 11:50 am

Ministers either don’t understand private sector, or don’t care

By: Christian May

Editor-in-Chief

Add as a preferred source on Google
Play Video

No politician could actually get away with telling businesses to “suck it up” when they warn about the impact of tax rises, though Labour’s Darren Jones came dangerously close yesterday, airily telling the BBC that bigger businesses can handle higher costs.

While it’s true that they’ll find a way to pay these new taxes and wage hikes, it won’t be by dipping into their cash reserves; it will be by raising prices on consumers, passing costs on to suppliers, holding down pay for their existing staff, scaling back investment or avoiding any new hires.

In the supermarket sector, margins are already punishingly tight. Finding hundreds of millions of pounds a year to meet the demands of increased labour costs and new levies will not be easy and will not be done with consequences.

For ministers to pretend otherwise is either disingenuous or evidence of a devastating lack of awareness of the realities of private sector employment.

An uplift in public sector pay was among the government’s first acts, adding to the ‘blackhole’ of public finances long before revealing their plan to fill it in on the backs of private sector employers. Last week’s deal to call off London’s latest tube strikes will see substantial pay rises for London Underground staff (taking the salary of an experienced driver to just under £70,000) with the promise of a four day week to sweeten the deal.

Perhaps ministers assume the private sector can simply do as the public sector does. In this they are mistaken.

Some of the country’s largest employers in the retail and hospitality sectors have warned that unless the government revisits its plans for employers’ national insurance, price rises in shops, pubs and restaurants are inevitable. Such a move risks dampening consumer confidence, further undermining what little economic growth this government has managed to put on the cards.

Meanwhile, smaller employers will simply open fewer hours, endure an erosion to their profits (never guaranteed in the first place) and take on fewer staff. On top of these new costs, employers of every size will also be contending with Labour’s new employment rights reforms, which will add insult to the injuries caused by the Budget.

For a government that seeks to prioritise job creation and economic growth, they’ve been remarkably reckless.

Read more

M&S chair: Tax and employment costs holding back Britain

Archie Norman, business leader, speaking at a corporate event wearing a suit and tie, engaging with the audience.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News
  • Opinion

Categories

  • Opinion
  • Business
  • Economics

People & Organisations

  • employment
  • Labour
  • National Insurance
  • Rachel Reeves
  • UK economy
  • UK Government

Trending Articles

  • Five-star Mayfair hotel hit with HMRC winding-up petition

  • It’s not just Jason Arday, most of sociology is a scam

  • IT consultant ordered to pay £50,000 after being accused of stealing Soho House members’ personal details

  • As it happened: FTSE 100 falls as Iran and US clash over Strait of Hormuz; Oil stockpiles ‘rapidly depleting’

  • As it happened: Stocks jittery as oil nears $90; Trump ‘semi-negotiating’ with Iran

More from Morning Wire

  • M&S chair: Tax and employment costs holding back Britain

    Retail
    Archie Norman, business leader, speaking at a corporate event wearing a suit and tie, engaging with the audience.
  • Will Burnham take the pressure off business? Don’t bank on it

    Politics
    Andy Burnham speaking passionately at a public event, wearing a suit, highlighting his role as a prominent political figure.
  • Warehouse tax could threaten high street businesses, Burnham warned

    Retail
    Amazon logo on a building, representing the e-commerce giants brand and corporate presence.
  •  Burnham to unveil new cost of living measures on UK tour

    Politics
    Andy Burnham, Mayor of Greater Manchester, speaking outdoors with a lapel microphone on his suit jacket.
  • Labour’s ‘chaotic’ zero-hour crackdown could cost firms £3bn per year

    Economics
    Andy Burnham, Mayor of Greater Manchester, in a suit and glasses, looking serious against a bright sky.
  • Brits dodge the high street as heatwave boosts online shopping

    Retail
    Shoppers carrying various retail bags, including New Look and M&S Food, on a paved street, indicating retail sales activity.
  • Industry bodies call on Burnham to bring down energy bills to fire up growth

    Energy
    North Sea oil terminal with tankers, storage tanks, and cranes under a cloudy sky, highlighting energy industry infrastruc...
  • Burnham promises to ‘build new economy’

    Politics
    Andy Burnham, Mayor of Greater Manchester, speaking at an event
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook