Chancellor Rachel Reeves has come under renewed criticism from senior business figures following the publication of her latest Budget, with some leaders describing it as “tone deaf” and disconnected from the needs of the private sector.
John Roberts, chief executive of online electricals retailer AO World, told Times Radio that the Budget demonstrated a “lack of appreciation of business” and “a bit pathetic” understanding of entrepreneurship. He said Reeves’ comments on the importance of supporting entrepreneurs left him “pretty speechless.”
“She has absolutely no appreciation of business and doesn’t seem interested in finding any,” Roberts said. “All the rhetoric that I hear is to demonise those that succeed. The wealth creators need to keep paying so she can fritter it away on welfare.”
Roberts added that the only substantive change he noticed was the removal of premium cars from the Motability scheme. “From a business perspective, it was tone deaf and a bit pathetic,” he said.
His remarks reflect growing frustration among some business leaders who argue that the Budget prioritised welfare expansion and tax increases over policies that encourage growth, investment, and private-sector confidence. The Chancellor announced £30 billion in new tax rises this week, measures that have unsettled many entrepreneurs and investors.
Concerns have deepened after Reeves refused to rule out further major tax increases in 2026. Asked on LBC whether she could reassure voters that no additional large-scale tax rises were planned, she said, “No chancellor can predict the future or write next year’s budget. Chancellors, governments have to respond to events.”
Reeves also highlighted that she had doubled the government’s fiscal headroom to £22 billion, providing a buffer against future economic shocks. “I’m sure these will continue to come our way,” she warned. She repeated the same message on BBC Radio 4’s Today programme, emphasising that future budgets cannot be pre-written.
The comments are likely to heighten anxiety among business owners already grappling with the impact of rising taxes and a challenging economic outlook. Some industry leaders argue that continued uncertainty around fiscal policy could deter investment and slow private-sector growth at a time when economic stability is crucial.
As criticism mounts, the debate over balancing welfare commitments with measures to stimulate entrepreneurship and investment is expected to continue. Reeves’ approach signals a focus on fiscal flexibility, but for many in the business community, the Budget raises pressing questions about the government’s understanding of the pressures facing private enterprises.
