The government needs growth in corporate travel “like hell”, leaders of the UK business travel sector heard yesterday.
Political commentator and broadcaster Steve Richards told the Business Travel Association (BTA) conference in Gibraltar that the Labour government “needs economic growth to generate revenue to pay for services. That gives you leverage.”
He suggested: “They need you like hell. If they don’t get growth, they will be out.”
The government elected in July with a landslide majority “has had no honeymoon”, Richards noted.
He reported Labour MPs at the party conference in Liverpool last month, “were all miserable, saying ‘We’re screwing it up. We could lose the next election’.”
Richards argued prime minister Keir Starmer and chancellor Rachel Reeves have “trapped themselves with a huge Budget on October 30 when they’ve ruled out touching all the main revenue raising taxes – income tax, National Insurance, VAT and corporation tax.
“Labour needs a lot of money and is left with raising capital gains tax and inheritance tax. Reeves is telling every Cabinet member they have to cut, cut, cut.”
He said: “All focus is on the Budget, but they are scrambling around to raise tax.”
Richards suggested a government extension of employment rights would go ahead despite concerns in business at some of the proposals, noting “One of Starmer’s genuine passions is employment rights.
“Labour is cautious, but on employment rights Starmer is committed. He thinks his [toolmaker] father was humiliated at work.”
The railways will revert to public ownership run by Great British Railways, he added, but not because of Starmer. He told the BTA: “Starmer is not interested in transport.” But transport secretary Louise Haigh is “a passionate believer in public ownership”.
However, Richards said: “They haven’t fully worked out how it will work. Great British Railways is meant to be an arms’ length body [from the government], but the stakes are so high. The government will be accountable for whether the railways improve, so it won’t be arms’ length.”
He added: “The government has not had a honeymoon, but it has had one big break. The Tory Party has left the stage and may be off it a long time.”
Richards noted: “Every single cabinet member voted Remain and regards Brexit as a disaster, but they’re unable to anything about the single market or customs union.”
Starmer has ruled out rejoining either.
Richards concluded: “Labour has the House of Commons to itself for five years, but it all seems quite fragile. The government can do what it wants in Parliament, but it’s limited in what it can do on tax and Europe.”