Ashwin Jayaram

The private sector creates the wealth. The government spends it. The Labour government forgot which one comes first. Every public-sector wage, every benefit, every hospital, every local government salary, every government infrastructure project is paid for by people who take a risk, hire someone, make something, sell something and turn a profit. That is not ideology. That is basic economic arithmetic. Labour came into power talking about growth and partnership with business. But the Labour government simply do not understand the economic engine room of the private sector. They treat the people who generate the money as a cash machine. Look at what the Labour government actually did: They put a tax on jobs. Employer National Insurance went from 13.8% to 15%, and the threshold collapsed from £9,100 to £5,000. That is not a levy on “the rich.” That is a levy on hiring a receptionist, a warehouse worker, an apprentice. Employer NICs then jumped 28% in a year and overtook corporation tax as the biggest tax paid by business. Companies paid almost £345 billion in tax in 2025–26 - up by 12.7%. That money comes out of wages that were not raised, jobs that were not created and investment that was postponed. The Labour government raised the price of success. They choked off growth. Capital gains tax went up. Business Asset Disposal Relief was watered down. Dividend tax went up. Farmers and family businesses were punished with inheritance tax. Smalll business founders were told, in effect: take the risk and when you finally sell the thing you built, we will treat the exit more like a success punishment payment to the government. That is not “fairness.” That is a government eating the seed corn of an economy. They layered cost on cost. Higher minimum wages with no offsetting productivity. Heavier employment regulation. Business rates that still punish the high street. Energy costs that leave manufacturers uncompetitive. Then more government briefings about the next raid — more capital gains tax, more wealth taxes, more “the rich must pay.” More uncertainty for businesses. Uncertainty is a tax of its own. And then the Labour government act surprised when private-sector activity slumps, businesses close, hiring stalls, and the CBI has to warn the government not to hit businesses again. You cannot squeeze the wealth-creating part of the economy and then demand it produces more growth, more jobs and more tax receipts. That is not redistribution. It is a wrecking ball strategy. You do not create more jobs by making it more expensive to employ anyone. You do not get more houses by driving builders and investors away. You do not produce more food by punishing those who grow the food. You do not get a richer country by treating profit and employee growth as something that should be plundered by the government. The wealth of a nation is built by people who could have chosen an easier life and did not. Punish that class long enough and you do not get equality. You get stagnation, fewer jobs and an economically illiterate government still hungry for money that is no longer being made because of their failure to support our British businesses. If Britain wants better public services, it needs a private sector that is expanding, not one that is being financially punished for the privilege of still being here.