London Daily

Focus on the big picture.
Saturday, May 31, 2025

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
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×