Rachel Reeves, Labor Shadow Chancellor of the Exchequer, delivers a speech on the UK economy ahead of the Bank of England’s monetary policy release on May 7, 2024 in London, England.
Dan Kitwood | Getty Images News | Getty Images
LONDON — More than 100 business leaders voiced their support for Britain’s center-left opposition Labor Party on Tuesday, almost five weeks before the country goes to the polls.
The group, which includes Wikipedia founder Jimmy Wales and former JP Morgan Cazenove vice-chairman Charles Harman, said in an open letter to The Times newspaper: “We, as leaders and investors in British business , think it’s time for a change. “
The letter’s authors say the British economy has suffered from a decade of stagnation, due to a lack of political stability and a coherent long-term economic strategy. The country has been “denied the skills and infrastructure it needs to thrive,” the letter said.
The Labor Party has “shown it has changed and wants to work with business to realize the UK’s full economic potential”, they said.
Among the signatories are also WPPKaren Blackett, President of the United Kingdom, Andrew Higginson, Chairman of JD Sports and the British Retail Consortium, as well as the former CEOs of Tesco Bank and Heathrow Airport. Few current FTSE 250 leaders make the list.
The right-wing Conservative Party has been in power since 2010, initially in a coalition with the smaller, centrist Liberal Democratic Party. The United Kingdom has had five prime ministers during this period.
The last British general election took place in 2019 and resulted in a decisive victory for the Conservatives led by former British Prime Minister Boris Johnson, who resigned in 2022 following a series of controversies.
Political polls over the past two years have pointed to a likely Labor victory, despite the significant turnaround in the national election that will be required.
Outgoing Prime Minister Rishi Sunak last week called a snap election for July 4. In his speech and comments to the media, Sunak said his government had overseen a fall in inflation and a return to economic growth.
Britain’s economy grew 0.6% in the first quarter, after falling into a mild recession last year.
Labor emphasized a commitment to fiscal discipline in the party’s campaign message. In a statement on Tuesday, Labor said its commitments included creating a new state-owned energy company and bringing rail operators under public ownership.
Labour’s shadow finance minister and former banker Rachel Reeves, meanwhile, has made a long-running effort to woo business and finance leaders.
In a speech on Tuesday, Reeves said Labor would cap corporation tax at its current level, work with the private sector to boost investment in the UK and publish a roadmap on business taxation in six months after coming to power, the BBC reported.
Delivering his own speech during the election campaign, Sunak said Labor would not bring financial security to people, according to the BBC.
CNBC has contacted the Conservative Party for comment.
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