Financial experts and business owners slam Labour one year on from election win

FINANCIAL experts and small business owners have slammed Labour one year on from winning a majority.

This week marks a year since Labour won the General Election and formed a Government.

Newspage spoke to financial experts and small business owners who gave their verdict on how Labour has being doing in economic terms and how they have affected them and their businesses.

Richard O'Connor, Director at First Mats, said as a small business owner he has no faith in Labour to grow the economy.

He added: "To enter government with such a large majority and such a strong mandate, and yet to achieve so little, is disappointing, to say the least. The major policies so far have made many of us poorer, and everything else is tinkering around the edges, like polishing the door handles of a rusty old car and expecting it to run like new again. 

"As a small business owner, my confidence in the abilities of Starmer and Reeves to return the economy to a state of growth is low, not least because of the growing number of U-turns they are making. 

"It just reaffirms my belief since they came in to power a year ago that their only real plan was to ‘get the Tories out’ but beyond that, they have no clear vision for the future. They said they'll grow the economy. They haven't."

Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, held much the same view, saying “it hasn't been a great start”.

He added: "It feels like a government without direction. Their huge majority was unexpected, which has created pressure to be more radical than their manifesto set out. 

"For this government to be successful, they need to generate economic growth but they're already spending the proceeds before they're realised. In an uncertain world, they're not leaving much wiggle room and it isn't evident that their growth figures will actually happen. 

“Will they have the strength to resist the siren call to resist ever increasing spending? The blunt cut to benefits and the subsequent climbdowns suggest not.”

Meanwhile, Keith Budden, Managing Director at Ensurety, said Labour “must do better”.

He added: "Let's start from fundamentals, Labour came to power on the promise of change. For the average man on the street, sadly, one year in and everything feels pretty much the same. There's very little change in society or finances, and business finances have been made worse by Labour's NI increases.

“What have they got wrong? More flip-flops than Brighton beach in a heatwave. No strong sense of direction. Whatever their guiding voice is, it must be muffled so as to be almost inaudible. Their efforts to turn the tide of immigration seem to be having zero effect. They appear to have zero idea on how to generate the economic growth the country desperately needs. If this were a school report - must do better!”

David Belle, Founder and Trader at Fink Money, was scathing.

He said: “There is not one thing I can truthfully say this government has done well. Every decision has been against the British people. Chagos, not reducing the extremely fraudulent benefits bill, PIP, releasing criminals early, the list goes on. The OBR has just revised down growth as well.

"Nothing this government has done has been successful and, from a policy perspective, I am left scratching my head at what they think they’re doing. Reeves has been a notable disaster and the essence of Starmerism appears to be milking the productive more and more. No wonder so many people are leaving the country and heading abroad.”

Rob Peters, Principal at Simple Fast Mortgage, said it has been a series of broken promises.

"Frankly, it’s been a year of underwhelming gestures and tax raids. Their affordable housing promises remain just that, promises, while landlords, investors and small businesses face more regulation and less incentive. 

“Reeves talks growth but delivers stagnation, and Starmer seems more concerned with optics than bold reform. Inspiring? Absolutely not.”

Riz Malik, Director at R3 Wealth, said businesses are struggling under the Labour Government.

He added: “Considering the preparation time Starmer, Reeves and the rest of the cabinet had, the first 12 months have been disappointing, to say the least. London continues to lose major listings, as businesses struggle under the increased pressure of the recent budget, and household budgets remain squeezed.”

He joked: “The only positive is that there is only three years left of the current administration and by that time we will be probably become the 51st State of America.”

Rohit Kohli, Director at The Mortgage Stop, said: "One year in and Labour’s performance has been underwhelming at best. It’s been a government of U-turns, lacking a clear, unified plan. Business confidence is down, the economy hasn’t shifted meaningfully, and promised change feels like smoke and mirrors. 

"Two-tier Keir is living up to his name with the latest changes to the benefits bill, and Rachel from accounts has swapped spreadsheets for soundbites - offering plenty of talk but little tangible progress. 

“This administration needs to get a grip, fast. Understand business, act decisively or risk losing the mandate altogether. The clock is ticking, and right now, it’s hard to tell if they even know what time it is.”

Tony Redondo, Founder at Cosmos Currency Exchange, called Labour “a total omnishambles”.

He said: "Labour won the election by saying as little as possible, relying on the fact that the country was exhausted of the Conservative party antics that saw a revolving door of PMs in and out of 10 Downing Street. 12 months on, Labour’s first year in power has been defined by ambition but undermined by execution. 

"Their focus on long-term investment in health, defence and green energy may be seen by some as commendable, but three U-turns in the last month including the welfare reform debacle, economic struggles with £40bn of taxes added on to the private sector, massive public sector pay rises given out with no performance strings attached, expose a government struggling to balance its promises with reality. 

“The public mood has quickly turned to exasperation. Labour must address this urgently to avoid squandering its mandate.”

Michelle Lawson, Director at Lawson Financial, agreed, adding: "Labour 12 months in is nothing more than an omnishambles. They've ignored industry leaders regarding the tax rises and business impact, they are ignoring immigration, ignoring experts regarding the Renters Reform, spending far more than the alleged £20bn black hole and some and just railroading through ill though out changes which are having a significant impact in the economy. 

"The PM and the Chancellor are the most unpopular ever and they got elected more by luck than judgement as the previous shower lost public confidence due to not listening to public sentement- something that Labour is also doing. They were given an absolute gift to make change but all in all it has been a monumental disaster."

Scott Gallacher, Director at Rowley Turton, was more balanced in his response.

He said: "I’d describe Labour’s first year as fairly solid but ultimately uninspiring. Yes, they’ve brought a degree of stability after years of chaos, but where are the big ideas? With such a huge majority, they should be bolder. 

"Instead, it feels like they’re squandering their mandate and struggling to deliver meaningful change. Too many U-turns have started to make them look weak and indecisive, and that’s damaging. 

"There’s constant uncertainty around tax policy—whether it’s ISAs, pensions, or capital gains—which unnerves savers and investors and risks stalling economic confidence. Starmer comes across as steady, but far too cautious, while Reeves hasn’t yet shown the transformative vision people hoped for and has hit the wealth creators the UK relies on. 

“Ultimately, voters didn’t just want competence, they want progress. Labour needs to show they’re capable of more than simply being ‘not the other lot'. Time is running out for them to turn cautious management into genuine, visible change.”

Pete Mugleston, Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk, said it's been an awful start for Labour.

He added: "The Liz Truss psychodrama aside, this is probably the worst start a government has had in the past 30 years. They have got almost every decision wrong, from winter fuel payments to benefit reform; it's been a shambles. 

"That's not to mention Rachel Reeves' autumn statement, which has been a disaster and still left the government scrambling to find tax receipts. Even in foreign policy, where they have been strong in support of Ukraine, there have been unnecessary mishaps around the Chagos Islands. 

“That's probably the best way to sum up the past 12 months from Labour, all the mistakes have been unnecessary and of their own making. We can only hope they learn from them.”

Kundan Bhaduri, Entrepreneur at The Kushman Group, said the Government has shown “contempt for wealth creators”.

He said: "Let’s start with what Labour's got right: stability. Markets aren’t spooked, and international investors, particularly in infra and energy have returned to the table. But here’s where it goes sideways. The relentless push toward overregulation has become the defining flavour of this government. 

"From clunky planning reforms, to the threat of landlord registers, and rent controls under the banner of the Renters’ Rights they're treating property investors like cash cows and villains in equal measure. Starmer and Reeves have consistently shown a contempt for wealth creators. 

“They want to tax investment, strangle landlords, and meddle with markets. Instead of fostering an environment conducive to growth, they seem intent on redistribution without acknowledging that a flourishing economy benefits everyone. Stability without genuine economic expansion is mere stagnation dressed in a more polished veneer. If this continues, the British public will pay the price for Labour's misadventures.”

Samuel Mather-Holgate, Independent Financial Adviser at Mather and Murray Financial, said: "It's no secret that Labour did inherit a mess in the public finances, but the politics of how they have gone about plugging this hole has been dreadful. From the first act of removing winter fuel allowance for most pensioners, including those on very modest incomes, to the current charade of cuts to PIP. 

“Labour's aims are admirable, but they keep making decisions that tot up to small savings, but do significant electoral damage. They need to make break to their manifesto commitments, whether that is in increasing VAT, NI or income tax as this will make a big difference to the deficit, and will mean they don't need to keep tinkering with things that make little difference.”

Anita Wright, Chartered Financial Planner at Anita Wright, said the government is “out of touch”.

She said: "Labour's strategy leading up to the election was smart: say very little, make no real commitments, and let the Tories destroy themselves through infighting and failure. But since taking office, the mask has slipped, and what we’re seeing is a government that is completely out of touch. 

"Look across the front bench – most of them have spent their careers entirely in the public sector - they’ve never run a business. We’ve also seen a string of embarrassing policy reversals: winter fuel allowance cuts, disability benefits cuts, and a U-turn on whether there would be a grooming gangs inquiry. 

“The economic strategy is crumbling. The promised savings won’t materialise, and the deficit is forecast to grow even larger this year than last. UK is trapped in a vicious debt loop – that reality has now fully arrived. The public gave them a mandate not because they believed in them, but because they believed in the alternative even less.”

Brigitte Le Boulleur, at Brigitte Le Boulleur, simply said “Labour is awful”.

She added: "As a business we noticed a large drop in income after the Truss disaster, nothing has improved. Oh! Wait! They are still going ahead with us having to file accounts every 3 months. They try and con us by telling us it is to save time.

Total utter lie. Immigration still coming in, Northern Ireland health service is still on its knees (for which you may have to wait 12 years if they need replaced). The economy is not better. 

“Just not much difference with the Tories really. Where are the politicians who fought for their country, and not just grabbed things for themselves? Time to see alternatives coming forward otherwise the whole of Europe is doomed. One thing they are very good at is communication and make believe. As for the Renters Rights bill... A lot of small landlords are getting out of the business, less housing availability. Bravo.”