Digby Jones, head of the Confederation of British Industry (CBI), has pleaded with Labour not to cave in to pressure from unions and some party activists and throw away its pro-business credentials.
In an article written for the left-wing magazine Tribune, Jones called on the government to protect its reputation for economic competence in its upcoming general election manifesto.
The CBI chief argued against an extension of trade union power in the workplace, and warned that there was a “business-is-bad prejudice in some parts of the Labour movement.”
“Removal of Margaret Thatcher’s union laws…would do untold damage to the UK’s reputation to do business.
“Labour flexibility is not some clever way of giving companies the right to exploit workers. The fact that we have a flexible labour market and such low unemployment is no coincidence.
“Business people used to lack confidence in the ability of Labour to carry out a primary task of government – to run an economically competent administration.
“This is no longer the case thanks to the current government’s commitment to macro-economic stability, sound public finances and a flexible labour market.
“Low inflation, low interest rates, virtually no unemployment and good sustainable growth – all happening at the same time – has eluded this great country of outs for over a century,” he said.
Jones admitted that firms needed to do more to ensure workplace equality and enforce the minimum wage, but said that any further tax rises to pay for public services would cause fury among small businesses.
“The government has to succeed with the money it has. After the next election there will be no stomach for further tax increases.
“If taxes, or public sector pay including pensions, rise significantly it will once again raise questions about the way that the government is managing the economy.
“The question of economic competence could return to haunt a third-term Labour administration,” he said.
