It’s becoming increasingly clear that the UK’s economic engine is sputtering, and not because of global forces alone.
Leading voices from British business are sounding the alarm over policies they say are driving investment and jobs overseas.
At the forefront of this warning is Lord Rose, the former Marks & Spencer boss and current chairman of Asda, who doesn’t mince words: the UK is teetering “genuinely at the edge of a crisis.”
Rose’s stark message comes as another heavyweight, Sir Jim Ratcliffe, billionaire owner of Ineos and a key investor in Manchester United, has announced he is leaving the UK.
Ratcliffe cites Labour’s aggressive stance against oil, gas, and chemical industries as the deal-breaker, signaling a broader exodus of investment if current policies remain.
Investor Confidence Plummets
The concern isn’t just about individual business leaders leaving.
Ineos chairman Brian Gilvary’s comment that Britain is “one of the most unstable fiscal regimes in the world” for energy and natural resources underscores a growing global lack of confidence.
The consequence? A potential sell-off of British government bonds, or gilts, which drives up borrowing costs.
Instead of delivering Starmer’s promised G7-leading growth, the government now faces the highest 30-year bond yields in the group.
That translates into an eye-watering £126 billion annual interest payment on national debt—more than the combined budgets for defence and public safety.
Labour Policies Under Fire
The criticism is not abstract. Tens of billions of pounds worth of investment from some of the UK’s most innovative companies are being redirected overseas.
Labour’s £25 billion annual hike in employers’ National Insurance contributions has already cost around 174,000 payroll jobs, hitting sectors like hospitality and retail hardest.
Boardrooms are also nervous about the Employment Rights Bill, championed by Deputy Prime Minister Angela Rayner.
With 72% of Institute of Directors members warning it could add up to £5 billion in costs per year, businesses fear it will stifle growth further, pushing inflation higher just as Chancellor Rachel Reeves battles a stubborn 3.8% annual rate.
Creative and Life Sciences Sectors Feeling the Pinch
Even sectors once celebrated as Britain’s success stories are under threat.
At London’s Guildhall, Reeves praised the creative industries, but many firms in attendance are quietly cutting jobs amid rising costs.
Life sciences companies have also turned their gaze overseas. AstraZeneca scrapped a £450 million vaccine plant expansion in the UK after Labour withdrew backing, redirecting billions of dollars of R&D to the US.
GlaxoSmithKline has followed suit, planning new investments in Philadelphia due to Health Secretary Wes Streeting’s increased “voluntary” levy on drugs sold to the NHS.
The message is clear: the UK is no longer viewed as a friendly environment for big-scale investment.
The Disconnect Between Government and Business
Labour seems unable—or unwilling—to appreciate how its tax and regulatory approach is impacting the economy.
Business leaders repeatedly stress that these policies are destroying jobs and discouraging entrepreneurship, yet ministers remain insulated from the consequences.
Even high-profile visits by politicians wearing hard hats can’t disguise the fact that they often fail to hear the real concerns of companies driving the economy.
From JD Sports worrying about struggling high street stores to Ineos and AstraZeneca shifting investment abroad, the warnings are multiplying.
A Critical Moment for Britain
The interventions from Lord Rose, Sir Jim Ratcliffe, and other corporate leaders are not minor grumbles—they represent a critical signal from the very people who keep Britain’s economy running.
Ignoring their warnings risks further capital flight, job losses, and a long-term erosion of the country’s business reputation.
If the UK hopes to revive growth and regain investor confidence, the government must listen to the realities facing businesses today—before the economic fallout becomes irreversible.