It is supposed to be the holiday season, but it doesn’t feel like there is much holiday spirit this summer, given the economic storm clouds that are gathering. The latest edition of the Institute of Directors' Economic Confidence Index was published last week and its reading was concerning.
This measure has been in existence since 2016 and it has been revealed that it recorded its lowest ever reading in July, with a reading of -72, down from -53 in June. What this means is that UK business leaders have entered the summer with the lowest confidence levels in a whole decade. It’s a very tough trading environment for businesses and make no mistake, it is the fault of the Labour Government. It is very telling that no one in Keir Starmer’s Cabinet has any experience of running a business.
Last autumn’s budget delivered by Rachel Reeves has been casting a long shadow over the economy ever since, and this year’s budget is fast approaching. The increase in National Insurance that came into effect in April has been hitting business hard, alongside other costs that the government has placed upon them. Recruitment is down and unemployment is rising.
Labour are taking us on a road to ruin. In appeasing their left-wing backbenchers and trade union paymasters, the government are massively overspending and we are all going to end up paying the price with higher taxes, higher inflation, higher unemployment and higher debt - all with an economy that they are causing to struggle.
It will soon be three years since the disastrous ‘mini budget’ under Liz Truss (I voted for Rishi by the way), which Labour love to go on about. The irony is this government are making even bigger mistakes than she made. The UK’s borrowing costs are now reaching levels not seen for 30 years and are now higher than after the mini budget. Our country is getting stuck in a doom loop of rising debts, higher taxes and slower growth. Debt interest payments are twice the defence budget and growing. All this is not sustainable and urgently needs addressing.
Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group
6th August 2025
