Rishi Sunak's government has been criticized for neglecting the «real economy» to focus on developing the UK tech sector. Credit: Stéphane Rousseau/PA Wire
Rishi Sunak is set to dissolve Boris Johnson's top business council amid growing concern from senior management that Downing Street is turning its back on the private sector.
A board made up of a number of leaders » intended to provide «candid feedback» on policy decisions, last met in February and is becoming increasingly irrelevant, according to sources.
The decision to abolish it was fueled by fears that the prime minister and the chancellor were ignoring business.” worries about rising taxes and red tape.
In an attempt to reset the relationship, Mr. Sunak has hired a former investment banker as his new business czar and will host an elected boss meeting at an event called the Business Connect Conference next week.
However, executives are concerned that the prime minister is only interested in technology companies as Downing Street tries to build a British version of Silicon Valley.
The source said: «There is a general sense of lack of business involvement.
«If you're a tech unicorn, you can have as much access as you want.»
Meanwhile, the slower growing segments of the «real economies» such as retail were «put in a Cinderella heap,» they added.
Understandably, the industry is disappointed with Mr. Sunak's decision to forego the open door. the approach taken during the Covid crisis when leaders had relatively easy access to then Prime Minister Boris Johnson.
canceled the open door policy for businesses that Boris Johnson adopted during the pandemic. Photo: Simon Dawson/No10 Downing Street
Downing Street is now returning to a more hierarchical pre-pandemic system, they say, when companies were forced to deal with government departments rather than directly with No. 10.
This follows widespread dissatisfaction with the government's decision to raise corporate tax from 19% to 25% amid the economic downturn.
Downing Street sources explained last night that the heavily guarded Business Connect conference was no substitute for business advice from Mr. Johnson. It is believed that only 20 to 30 leaders are invited.
They insisted that it would be wrong to say that «Rishi closed the door» to business leaders, adding, «His big priority is economic growth, and at the heart of that is business engagement.»< /p>
Originally titled «Recovery Better Business Advice» When launched in January 2021, Mr. Johnson's Business Advice was hailed as a way to leverage the knowledge and experience of business leaders to better manage the economy.
Mr. Johnson stated that the meeting would be held quarterly and membership would rotate every 12 months.
The first iteration of the board included Bernard Looney, chief executive of BP; Dame Sharon White, Chairman John Lewis; Philip Jansen, chief executive of BT; and Sean Doyle, chief executive of British Airways.
They were replaced by Whitbread CEO Alison Britan; Amanda Blanc, head of Aviva; and Charlie Nunn, CEO of Lloyds Bank.
Announcing the new group in February 2022, Mr. Johnson said: “Using the exclusive powers of our new Business Council, we will work together to create new high-skill, high-paying jobs, spur innovation in science and technology, and mobilize investment to realize green the Industrial Revolution – all while raising the bar and making Britain a better place to do business.”
1603 corporate tax
The perceived importance of the council has diminished since Mr Johnson's decision to step down as prime minister.
The third meeting last fall led by Liz Truss was postponed and did not take place.
The final meeting took place in February, two committee members said.
It was revealed last week that former Morgan Stanley French chief executive Frank Petitgas has been appointed as Mr. Sunak's new business unit and investment advisor.
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He is expected to take a different approach to Mr Johnson's business adviser, political lobbyist Alex Hickman, who sources say had a good reputation for facilitating meetings with the prime minister.
Interaction between The recent scandal that has engulfed the Confederation of British Industry (CBI), dubbed the UK's largest business lobbying group, has further complicated business and government leaders.
Until recently, the CBI has been actively engaged with high-profile officials. on Downing Street.
But the government is suspending ministers and senior officials from interacting with the CBI until investigations into alleged sexual misconduct are completed, cutting one of the few key lines, albeit indirect, at No. 10 on the left top leaders.
Spokesman #10 said: “Growing the economy is one of the prime minister’s five priorities, and the Business Connect conference later this month is just one of several ways the government is engaging with key businesses and entrepreneurs across the UK to achieve this.”
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