UK business founders are reporting a dramatic collapse in confidence towards the Labour government, with a significant majority branding its policies as 'anti-business'. This wave of discontent emerges as companies brace for potential further tax increases in the imminent Autumn Budget.
A Stark Verdict from Business Leaders
The alarming sentiment is quantified in a new survey from the entrepreneur network Helm, whose members collectively oversee more than £8bn in annual revenue. The findings reveal that over 60 per cent of founders now consider the government to be 'anti-business'. An overwhelming 95 per cent feel the current administration does not 'reward hard work'.
This erosion of trust follows a series of government actions, including hiking employer national insurance contributions to 15 per cent from 13.8 per cent, increasing the national living wage, and a significant rewrite of employment law. The tax changes, which came into effect in April, have set a tense backdrop for the upcoming Budget announcement.
Investment Freeze and a Sense of Betrayal
The pre-Budget speculation has had a tangible chilling effect on business activity. A striking 75 per cent of Helm members admitted they would continue to freeze both hiring and investment until after the fiscal plans are unveiled next week.
Andreas Adamides, the chief executive of Helm, did not mince words, stating that members feel 'betrayed, ignored, and genuinely let down by a government that promised growth but has delivered nothing but uncertainty and indifference.' He emphasised that these are not faceless corporations but individuals who have 'risked everything to build businesses, create jobs, and drive the economy forward.'
This feeling is echoed by a wide range of chief executives from major firms like HMV and B&Q, who have jointly urged the Chancellor to avoid burdening businesses with additional taxes.
Political Repercussions and a Final Chance
The political fallout is severe. While 20 per cent of the surveyed founders voted for Labour in the last general election, none currently express an intention to vote for or even consider the party in the 2029 election. The Conservatives have also failed to capitalise on this discontent, with only six per cent of founders planning to vote for them, a catastrophic drop from 49 per cent the year before. This has left nearly 60 per cent of business leaders undecided on their voting intentions.
Despite the bleak outlook, Adamides noted that Chancellor Rachel Reeves still has a final opportunity to pull businesses back from the brink. He called for a Budget that actively supports UK companies and growth, stating, 'They've read endless speculation about punishing tax rises... The sense of betrayal is palpable. Rachel Reeves still has a chance to turn this around. We need a Budget that backs growth, not one that punishes success.'
