More than 100 business leaders urge voters to back Tories

More than 100 business leaders have urged voters to back the Tories on Thursday and warned Labour’s plans to bolster workers’ rights will “stifle industry”.

In a letter, the bosses of 135 small and medium-sized enterprises said that a victory for Sir Keir Starmer will take the economy “back to square one”.

Their last-minute intervention comes as the nation heads to the ballot box, with polls predicting that Labour is on course to secure a record majority.

In the open plea to voters the business leaders say that small businesses “provide millions with a livelihood” and give opportunities to young people.

They write: “Thriving businesses make for a prosperous Britain. More cost and bureaucracy mean businesses stop hiring, they stop investing and they stop growing.

“We are therefore concerned by Labour’s plan to impose on us new regulations and costly red tape.

“This will stifle industry and jeopardise jobs just as the economy is rebounding after Covid and the global energy shock.”

In a plea to voters they added: “Aspiration, education and enterprise are core Conservative values.

“We, representing businesses large and small, urge voters to ensure the UK stays on track. Let’s not go back to square one with Labour.”

Angela Rayner, Labour’s deputy leader, has unveiled plans to significantly bolster workers’ rights with a package of reforms that have drawn criticism.

Her proposed new deal for workers includes a ban on controversial “fire and rehire” tactics as well as the use of zero hours contracts for workers.

It would also give employees a new “right to switch off” and include a new law to force firms to protect interns and volunteers from sexual harassment.

Business leaders have expressed fear that the reforms will add extra red tape on companies, which would be particularly problematic for smaller ones.

The Institute for Fiscal Studies think tank warned last week that employers were likely to respond to the new requirements by lowering staff wages.

Michael Lorimer, the chief executive of consumer goods company DCS Group, was one of the signatories to the letter and issued a warning over Labour’s plans.

He said: “Labour’s proposed employee rights legislation is wholly misguided and will be counterproductive, undermining individuals and businesses alike.

“Good businesses don’t need government or opposition parties to overregulate, especially when they don’t actually consult or actively listen to what is happening on the ground.”

Labour has insisted that its workers’ rights reforms will benefit the economy and has pledged to introduce legislation to enact them within 100 days of entering office.

A party spokesman said: “Labour’s new deal for working people is a core part of our mission to grow Britain’s economy and raise living standards across the country.”