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Budget backlash

Plus, Aviva’s Direct Line £3.3bn takeover approach, Black Friday retail hopes and five ways to make your one-on-one meetings more effective

LONDON, ENGLAND - OCTOBER 30: Chancellor of the Exchequer, Rachel Reeves, poses with the red Budget Box as she leaves 11 Downing Street to present the government's annual budget to Parliament on October 30, 2024 in London, England. This is the first Budget presented by the new Labour government and Chancellor of the Exchequer, Rachel Reeves. (Photo by Leon Neal/Getty Images) (Image: Leon Neal/Getty Images)

The Budget continues to be a key topic of conversation among founders and chief executives, in particular the increase in national insurance contributions. The tax bill for each member of staff will increase by around 10 per cent for businesses from April. As a reminder, the Office for Budget Responsibility, the UK’s spending watchdog, has forecast that the policies in the Budget will lead to 50,000 fewer jobs in the private sector and reduce business investment.

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The Budget comes up in all my conversations with business leaders at the moment. While they understand that taxes need to go up and that the UK’s public finances need to be secured, there is bafflement that the government appears to be betting that economic growth will be driven by public sector spending, not business investment. “That is now how economies grow over the long-term,” the chief executive of a big listed company said to me this week. Others are less polite.

Steven Swinford, Business Leader’s political expert, has written his latest column about Rachel Reeves, the chancellor, and Labour’s approach towards business post-Budget. This column is one of a few articles in the latest edition of our magazine, which will be out next week, that tries to help you understand the post-Budget world.

Steven is the political editor of The Times and broke the story this week that led to the resignation of Louise Haigh as transport secretary.

In his latest column for Business Leader, he writes: “In the face of so much criticism, Reeves has elected to stand firm on all fronts. She has said she did not want to deliver such a painful Budget but was left with no choice because of the dire state in which the Tories left the public finances.”

However, he notes there is “significant cause for concern” among Cabinet members about the reaction to the Budget. He adds: “Ministers are worried, particularly by the jarring change in Labour’s narrative. Sir Keir Starmer, the prime minister, and Reeves went into the general election saying that growth would be their number one priority. They boasted that Labour was now the party of business and wealth creation as they set about wooing the City, committing to transform Britain into the fastest growing in the G7 group of developed nations.”

You can find the full column here.

Prime minister Keir Starmer and chancellor of the exchequer Rachel Reeves host an investment roundtable discussion
(Image: Frank Augstein – WPA Pool/Getty Images)

For another take on the Budget, I recommend checking out Richard Harpin’s column in The Sunday Times last week. Richard, who is of course the owner of Business Leader, wrote: “The collective mindset of British business, at least the one portrayed in the media, feels like an echo chamber of crisis after crisis — banking, Brexit, Covid, the cost of living and now a business-unfriendly budget. Well, the government is not backing down, so we should stop grumbling and act. To turn problems into opportunities, you need resilient leaders. And we have them.”

He adds: “My advice is not to obsess about those external factors. It’s only a crisis if you let it become one. If you take decisions from a place of confidence and enthusiasm, rather than one of fear and trepidation, you will emerge from difficult times far stronger.”

The UK’s largest retailers have warned they face a £2.3bn hit from the rise in national insurance contributions. It is Black Friday and Cyber Monday this weekend, the busiest shopping period of the year and a vital moment for retailers. It will be fascinating to see the mood of the industry in January when companies announce their Christmas trading figures. Any news of job cuts or shop closures will lead to more frustration being directed at the government…


What you need to know this week

1. Shoppers stayed away from UK retail destinations for a second consecutive month in November, as the late timing of Black Friday, Storm Bert and low consumer confidence dented footfall. Shopping centres were worst hit, with a 6.1 per cent drop, while northern regions bore the brunt of the decline. Retailers hope Black Friday and Christmas sales will revive fortunes during the crucial “golden quarter.” Read more here

2. Aviva’s £3.3bn takeover approach for Direct Line has lifted the insurer’s shares by over 40 per cent amid talk of a bidding war. Direct Line has rebuffed the offer but investors anticipate a higher bid or rival approach. Ageas, a previous suitor, may re-enter the fray while analysts predict Aviva could sweeten its offer to secure a deal. Read more here.

3. While the Direct Line deal is pending, TI Fluid has accepted a bid from ABC Technologies. The Oxford headquartered auto supplier said it had agreed to a 200p-per-share offer that values the company at £1.04bn. This deal comes a day after the Loungers bar and restaurant chain announced it had agreed to a £338m takeover by US private equity firm Fortress Investment in a £338m deal. Read more here

4. Australia has passed groundbreaking legislation banning under-16s from holding social media accounts.  The strict age-verification rules are set to take effect in November next year. Platforms like TikTok, Instagram, and Snapchat face fines of up to AU$50m (£25m) if they fail to comply. Similar measures are reportedly being considered in the UK. Read more here

5. Despite rising gender diversity in FTSE 250 boardrooms, the number of women in top executive roles has dropped by 11 per cent, according to Cranfield University and EY research. The report found that the number of women holding executive positions at FTSE 250 firms fell from 47 in 2022 to 42 in 2024. The report cites maternity bias, childcare policies, and male-dominated environments as key barriers to breaking the glass ceiling. Read more here


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Reflecting on his early missteps, Bill Gates admitted that intelligence is not one-size-fits-all – a lesson some tech titans, including Elon Musk, have yet to embrace. Musk’s ventures into politics and government reform highlight the risks of assuming expertise in one field guarantees success in another. As he champions human intelligence while advancing AI and brain implants, Musk may ultimately put Gates’ insight to the test.  


And finally

Anne-Laurie Léger won an honourable mention in the 2024 International Dog Photography Awards with photo
Anne-Laurie Léger won an honourable mention in the 2024 International Dog Photography Awards with photo (Image: blooming.dahlia.photography on Instagram)

The winners of the 2024 International Dog Photography Awards were recently announced. Featuring categories such as portrait, action and dogs & people, this annual competition celebrates the very best in dog photography globally.

Over 1,700 entries from more than 60 countries were sifted through and you can see the winners here.

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