London Daily

Focus on the big picture.
Monday, Mar 30, 2026

‘Economically illiterate’: PM’s Tory conference speech gets frosty reception

Next boss, thinktanks and unions criticise Boris Johnson, saying ‘shortages cannot be blustered away’
Business leaders rounded on Boris Johnson for lacking a coherent economic plan after he delivered a boosterish conference speech that made barely a mention of the supply chain crisis.

The address was condemned as “bombastic but vacuous and economically illiterate” by the free market Adam Smith Institute, while the Conservative thinktank Bright Blue issued a stark warning.

“The public will soon tire of Boris’s banter if the government does not get a grip of mounting crises: price rises, tax rises, fuel shortages, labour shortages. There was nothing new in this speech, no inspiring new vision or policy,” its chief executive, Ryan Shorthouse, said.

The prime minister closed the Conservative conference in Manchester with an upbeat, campaign-style address interspersed with jokes and delivered from a specially created stage to a packed hall of the party faithful.

He failed to mention supply shortages, petrol queues or the £20-a-week reduction in universal credit that came into force on Wednesday for more than 5 million families – the biggest overnight cut in benefits ever.

Instead, the prime minister set out an optimistic vision of a high-wage, high-skilled economy, promising to “unleash” the “unique spirit” of the British people.

He dismissed current “stresses and strains” as side-effects of the economic recovery and said firms could no longer “use immigration as an excuse for failure to invest in people, in skills and in the equipment, the facilities, the machinery they need to do their jobs”.

The speech was enthusiastically received by Conservative activists, the first of whom had queued at the venue since about 6.30am. But it was robustly attacked by business groups, trade unions and thinktanks across the political spectrum as failing to tackle the economic challenges facing the UK.

Tony Danker, director-general of the CBI, which represents 190,000 UK businesses or about a third of the private-sector workforce, said Johnson had set out a “compelling vision” of a high-wage, high-skill economy. But he warned: “Ambition on wages without action on investment and productivity is ultimately just a pathway for higher prices.” He added that the economy is at a “fragile moment” and urged the government to work more closely with business.

Business leaders also hit back at suggestions from the prime minister and his cabinet that they had been unprepared for Brexit and sought uncontrolled immigration. The Next boss, Simon Wolfson, a prominent Brexiter, said before the speech that there was “real panic and despondency” in the hospitality and care-home sectors because of staff shortages.

Unions criticised the speech. Frances O’Grady, the secretary general of the TUC, said: “If Boris Johnson was serious about levelling up Britain, he wouldn’t be slashing universal credit in the middle of a cost-of-living crisis. The PM is in no position to lecture people on wages when he is holding down the pay of millions of key workers in the public sector.” The travel industry union chief, Manuel Cortes, said it was “nothing but hot air”.

The Liberal Democrat leader, Ed Davey, called the speech “the most out of touch display by a prime minister in decades” and said the conference “may as well be happening in a parallel universe”.

Johnson praised private enterprise in his speech, claiming “it was capitalism that ensured that we had a vaccine in less than a year” and promising to encourage the “wealth creators”.

But some business groups have been dismayed by the government appearing to blame companies for what Johnson called the “broken model” of low wages and low investment.

The prime minister has in the past been notoriously dismissive of the concerns of business groups, reportedly saying during the fraught Brexit negotiations in 2018: “Fuck business.”

Mike Cherry, the chair of the Federation of Small Businesses, said: “It’s a relief to hear the prime minister speak positively about the business community. But it’s equally remarkable to hear the benefits of a low-tax economy vaunted when the government has just signed off a hike in national insurance contributions … which we estimate will cost at least 50,000 jobs.”

On the sidelines of the conference, some senior Conservatives expressed concern about the government’s failure to foresee the HGV driver shortage that led to the army being drafted in to deliver petrol, and warned that Johnson needs to work to restore relations with business.

One minister told the Guardian that voters had so far been stoical about fuel shortages but unless the situation was brought under control within a week they would lose patience.

Other Tories are concerned that the rise in national insurance contributions has trashed the Conservatives’ reputation as a low-tax party.

Steve Baker, a prominent pro-Brexit MP, said: “The speech was vintage Boris. We all enjoyed it. But in the end we need to feel like we are part of a Conservative government that is lowering taxes and raising the standard of living.”

Shevaun Haviland, director general of the British Chambers of Commerce, said: “There is much in the prime minister’s ambition for the future of the UK which should be rightly applauded but what businesses urgently need are answers to the problems they are facing in the here and now. Firms are dealing with a cumulative crisis in business conditions as supply chains crumple, prices soar, taxes rise and labour shortages hit new heights.”

The backbench MP Tom Tugendhat said he was concerned about the risks of runaway inflation. “Rising wages are fantastic, and the prime minister is absolutely right about that, but you’ve got to make sure you keep prices under control too,” he said.

“I’ve spoken to very senior high street bankers in recent days, and they say that inflation for a household is running for the poorer members of our community at 10-15%, because energy costs are such a high proportion of their budget.”

Howard Davies, the chairman of NatWest Group and the former chair of the Financial Services Authority, told the BBC’s Today programme that paying people more without increasing productivity would just drive up inflation.

To achieve productivity gains, more investment was clearly needed, he said, but the UK had been investing less than any other European country apart from Greece in the past five years because of business uncertainty around the new trading relationship with the EU.
Newsletter

Related Articles

0:00
0:00
Close
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
Electric Vehicles Seen as Strategic Solution to UK Fuel Reserve Concerns
Rise of Lone-Actor Threats and Online Radicalisation Drives New Wave of Antisemitic Attacks in the UK
Canada Advances Plan to Ban Cryptocurrency Donations in Election Campaigns
UK Faces Looming Medicine Shortages as Iran Conflict Threatens Supply Chains
Deadly Meningitis Outbreak in the U.K. Highlights Urgent Need for Vaccination
Fresh Claims Emerge Over Harry and Meghan’s Australia Visit as Insider Speaks Out
NATO Assessment Indicates UK Defence Spending Has Fallen Below Alliance Average
FTSE 100 Slips as Middle East Tensions Weigh on Investor Sentiment
UK Economy Begins to Feel Early Impact of Iran Conflict as Policy Challenges Intensify
Russian National Jailed in UK After Assault Case Linked to Barron Trump’s Alert
Energy Price Surge Accelerates Shift Away from Fossil Fuels in UK Homes
UK Museums House More Than 260,000 Human Remains, New Report Reveals
Surging UK Gilt Yields Reflect Inflation Pressures and Fiscal Uncertainty
UK Issues Updated Guidance on Children’s Screen Time with Focus on Balance and Wellbeing
UK Migration Figures Show Shifting Trends Across Asylum, Visas and Channel Crossings
UK Watchdog Launches Probe into Five Firms Over Alleged Fake Reviews and Ratings
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
×