The government is in danger of losing its business-friendly credentials and the Tory leadership contest could mark the party's chance to win back the business vote, Confederation of British Industry (CBI) chief Sir Digby Jones has warned.
In a veiled threat to Tony Blair, Jones said that the Conservatives, like Labour, have ignored the warnings of business but that a current "seam of discontent" within the business community could sweep the Tories back into Whitehall if the new leader can press the right buttons.
But while Jones blames the Tories for taking the business vote for granted, he reserved particular ire for Labour's recent actions.
"The government is in danger of losing their business-friendly credentials," Jones said. "They are showing signs of taking their eye off the big picture in terms of business policies."
The CBI chief complained that Labour has catered too much to trade unions.
He criticised the government for giving unions £10m of taxpayer funds to modernize their computer systems when trade unions make up just 17% of the private-sector workforce.
Even further time and money has been wasted, he said, by not pressing ahead with pensions reform and allowing for inequalities between public and private-sector workers.
"I am quite sad that the relationship between my members and the government has never been so full of frustration and annoyance as it is today," Jones said.
Nevertheless, Jones said the CBI is not yet prepared to switch its allegiance from Labour to the Conservative Party.
"It's a defining moment in business' relations with the government, not a point of no return," he claimed.
