Business leaders join list of PM’S critics
Talk to us more or lose our confidence, City tells May amid fears for Brexit and state of the UK economy
KEY figures in business have branded Theresa May’s leadership style “problematic” and raised concerns over her competence, amid mounting fears her disastrous snap election could derail Brexit and the economy.
Sir Martin Sorrell, the chief executive of FTSE 100 advertising giant WPP and one of Britain’s most high-profile business leaders, branded the political situation “a real mess” and warned that Mrs May would have to change radically to cling on to her job.
He said: “If it’s going to be the same old thing from her then I think it is going to be problematic.”
A more “open and consultative approach” was the Prime Minister’s best hope for gaining credibility with business, Sir Martin said, adding: “She has taken some good actions, like removing her top advisers.”
Nick Timothy and Fiona Hill resigned at the weekend over their roles in the loss of the Conservative majority in Parliament. They were viewed by business leaders and organisations as a major factor in Downing Street’s frosty relationship with Britain’s biggest employers.
Andy Higginson, chairman of the supermarket Morrisons, which employs more than 130,000 people, suggested Mrs May had damaged her reputation among businesses. He said: “Before the election I think we were quietly optimistic that she was quietly competent. I think she needs to regain some of that. No one will be betting on her leading another election campaign.”
Sir Martin and Mr Higginson echoed warnings from business organisations that a second election may be coming.
Business leaders are increasingly willing to voice criticisms of Mrs May’s failure to listen to their concerns over Brexit and the economy. She ran on a manifesto that threatened to pull Britain out of the EU without a deal and proposed government intervention in a string of industries.
Sir Martin said there had been a brief period of engagement between Number 10 and business earlier this year, before “the shutters came down again”.
Two senior sources have said that at the World Economic Forum in Davos earlier this year, Mrs May surprised delegates by declining an invitation to an annual lunch attended by most of the country’s top business leaders.
Philip Hammond, the Chancellor, attended, but Mrs May was spotted at a nearby restaurant instead dining only with Mr Timothy.
The chairman of one of Britain’s largest companies joked that “since business never had a relationship with Mrs May, it cannot be said that it has deteriorated” while a senior source at a leading industrial organisation suggested that her Government had been uniquely uninterested in business and had focussed only on bad apples.
“We did not know what was going on or in her mind,” the source said. “With previous governments of whatever colour we have been able to engage and have a sensible conversation but this was not the case. No one in industry was happy about events such as Sports Direct’s treatment of casual workers and BHS’S collapse and pensions issues and it’s fine to talk about what went wrong as long as you are prepared to talk about what went right.”
The instability in Westminster has unnerved businesses that were already coping with the uncertainty caused by Mrs May’s pre-election “no deal is better than a bad deal” stance on Brexit.
A poll of 700 members by the Institute of Directors (IOD) found a heavy blow to confidence from the hung parliament. Prior to the election, optimism and pessimism were almost balanced, but now a large majority of business leaders believe the economy will be in worse shape in a year’s time.
Steven Martin, the IOD director general, said: “Our members don’t know how much of the Conservatives’ manifesto will go in the Queen’s Speech, or whether the approach to Brexit will change, and in what direction.
“This makes it hard to take hiring or investment decisions. In order for something useful to come from this period of uncertainty, the Prime Minister must recognise that Brexit is a national undertaking, and involve all parties and parts of the UK to pursue a pragmatic departure from the EU.”
Deteriorating business confidence was underscored yesterday by a slew of gloomy figures, suggesting a squeeze on wages, slowdown in consumer spending and growth at a standstill in the crucial services sector.