London Daily

Focus on the big picture.
Tuesday, Jul 07, 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
Deep Purple Has Released Its Best Album in Decades
UK MPs Criticise Student Loan System as Potentially Mis-Sold to Millions of Borrowers
Policy Groups Propose Bank of England-Backed Solar Loan Scheme for Millions of Homes
UK Health Agency Issues Amber Heat Alerts Across Six Regions as Temperatures Rise
Royal Air Force F-35 Jets Conduct First High North Air Policing Missions From Aircraft Carrier
Major UK Companies Join Government Cybersecurity Pledge Amid Rising Digital Threats
UK Sanctions Russian Operatives Linked to Chemical Weapons Programmes and Poisoning Cases
UK Government Expands Free Breakfast Clubs and Limits School Uniform Costs
UK Water Companies Face Tougher Penalties Under New Environmental Enforcement Rules
UK Universities Warn Funding Cuts Could Damage Skills Pipeline and Economic Growth
NHS Expands Artificial Intelligence Tools to Help Reduce Patient Waiting Lists
NHS Ombudsman Criticises Failures in End-of-Life Communication and Patient Care
NHS Launches Nationwide Vaccination Drive After Rise in Measles Cases
UK Government Introduces New Limits on Foreign-Linked Political Donations
Thames Water Creditors Advance £10 Billion Rescue Plan to Prevent Potential Public Ownership
Andy Burnham Prepares Labour Leadership Platform as Party Faces Post-Starmer Transition
UK Met Office Issues Heatwave Alerts for London and Southern England
Keir Starmer Blocks Earlier World Cup Kick-Off Time for England Match Against Mexico
NHS Digital Transformation and Media Consolidation Highlight UK Policy Priorities
UK Government Pushes Digital Trade Rules to Cut Export Costs for Businesses
Bank of England Plans Leverage Rule Changes to Support Government Bond Market
UK Police Operation Targets Organised Immigration Crime Networks With Hundreds of Arrests
Yvette Cooper Calls for Global AI Rules to Prevent Security Risks
NHS Begins Major AI Expansion Through £10 Billion Digital Investment Programme
UK Government Tightens Rules on Political Donations to Limit Foreign Influence
Keir Starmer Defends UK Defence Spending Plan at NATO Summit in Turkey
Comcast’s Sky Agrees £1.6 Billion Deal to Acquire ITV Media and Entertainment Division
Senior NHS Doctors Vote in Favour of Renewed Strike Action Over Pay Dispute
Andy Burnham Set to Succeed Keir Starmer as Labour Leadership Nominations Open
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Office for National Statistics Updates Historical Investment Data Review to Improve Accuracy
Department for Science, Innovation and Technology Highlights Economic Gains From Digital Inclusion
Debate Intensifies Over UK Defence Strategy and Domestic Security Priorities
Report Warns Full Transport Accessibility Could Add £176 Billion to UK Economy Annually
Medicines Regulator Approves First Targeted Treatment for Advanced Merkel Cell Skin Cancer
Government Commits £22 Million to Brighton Seafront Infrastructure Renewal and Transport Safety
National Security Bill Returns to House of Commons Amid Calls to Protect Humanitarian Work
Government Tightens Overseas Political Donation Rules to Strengthen Safeguards Against Foreign Influence
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
×