London Daily

Focus on the big picture.
Tuesday, Aug 11, 2026

Johnson’s Tories are no longer the party of business

Johnson’s Tories are no longer the party of business

Analysis: business leaders find themselves in the crosshairs when it comes to who will pay for the pandemic

It has been billed in the press as the “death knell for Conservatism”. Culminating in Tuesday’s manifesto-busting national insurance rise, Boris Johnson’s Tories have used the past six months to announce £36bn a year in extra taxes – a bigger rise than in any budget since the mid 1970s.

For many business leaders it is taken as the final straw in a transformation for the low-tax Tories from a natural ally to an uncomfortable bedfellow. From the party of business, to “fuck business”.


The prime minister’s former employer, the Daily Telegraph, did not mince its words. Its front page declared not only the death of the Conservatism, but the trashing of Tory values.

Responding to the increase in national insurance contributions for workers and companies, as well as higher taxation of dividends, business leaders warn that raising their tax burden will hit investment and jobs in Britain’s fragile post-lockdown economy.

Colliding with Brexit and the end of Covid support schemes such as furlough and hospitality VAT cuts, the move comes at a time when the economy is under rising pressure despite the removal of pandemic restrictions. Shortages of workers and materials threaten to further choke off the recovery.

It is however in keeping with other changes imposed by the government, unwished for in the boardrooms of Britain. Brexit, with its friction for cross-border trade, the steadfast refusal to allow more EU workers to fill staff shortages and scrapping the industrial strategy. For libertarian business folk there have been other shocks: the railways nationalised, steel firms bailed out, workers’ pay subsidised and warning shots for US private equity firms looking to buy British companies.

That said, for all the complaints, business could have faced a far more radical reckoning.

Considerably larger sums could have been raised by taxing wealth, suggesting a readiness to sacrifice business on the altar of another key Tory constituency: the asset-rich.

Businesses will still benefit from among the lowest rates of corporation tax in the western world, despite a planned increase in the rate from 19% to 25%. A £25bn super-deduction tax break is offered, capital gains tax has not risen despite the recommendation of the Treasury’s office of tax simplification and the top bracket for income tax remains unchanged.

The Conservatives’ gradual shift away from low-tax libertarian dogma also highlights our transformed economic times. The long decade of austerity imposed by Johnson’s party after the 2008 financial crisis has fuelled public appetite for higher tax in exchange for better public services, leaving him with little choice but to respond, or face electoral punishment. The pandemic upended economic orthodoxy and is serving to turbocharge the demand for change.

Johnson is hardly alone among western leaders in soaking business to pay for the recovery. Joe Biden is pushing to raise more from companies to help fund a $3.5tn (£2.5tn) Covid recovery plan in the US, while 130 countries worldwide, including Britain and the US, plan to impose a global minimum corporation tax rate.

After the pandemic it is clear that taxes will rise. The only question is where the burden will fall. Unlike decades past, under Johnson business is in the Conservatives’ crosshairs.

Newsletter

Related Articles

0:00
0:00
Close
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
UK Expands Global Talent Visa Scheme to Support Research-Intensive Companies
UK Equity Funds Suffer Record One Point Six Billion Pound Outflow Amid Capital Gains Tax Fears
Three-Quarters of England Enters Drought as Fifth Summer Heatwave Raises Economic Risks
UK Hiring Stabilizes for First Time Since 2022 as Employers Adjust to Higher Payroll Costs
UK Chancellor Orders Whitehall Spending Cuts as Public Debt Exceeds Three Trillion Pounds
UK Manufacturing Output Records Fourth Straight Month of Growth
UK Condemns Russian Torture of Ukrainian Prisoners and Recruitment of Foreign Nationals
Long-Lost Royal Navy Warship HMS Tiger Found in English Channel After 118 Years
Northern Ireland Finance Minister Seeks Urgent Treasury Talks Over Regional Budget Pressures
UK Government Targets Subscription Traps and Misleading Discounts in New Consumer Rules
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
Four Ugandan Athletes Disappear From Delegation After UK Sporting Events
French Authorities Report Channel Interventions as Cross-Border Migration Dispute Continues
Home Office Admits Error in Settled Status Case Involving Long-Term Italian Resident
Unite Calls for Independent Review of UK Budget Watchdog's Fiscal Forecasting Rules
Thinktank Calls for £175 Annual Energy Bill Cut for Low-Income Households
Foreign-Linked Social Media Accounts Amplified Recent Unrest in Belfast and Southampton, Analysis Finds
London Mayor Sadiq Khan Orders Westminster to Drop Proposed Soho and West End Hospitality Ban
Royal Navy Deployments to Monitor Russian Activity in UK Waters Rise 25 Percent
UK Economy Expected to Grow 0.4 Percent in Second Quarter Despite Geopolitical Pressures
Andy Burnham Launches Cost-of-Living Measures Targeting Subscription Traps and Misleading Discounts
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
×