Rachel Reeves will fly to Davos tomorrow to try to revive her faltering growth ambitions, amid claims a 'fault line' has emerged between Labor and business.
The Chancellor arrives at the annual meeting of business and political leaders buoyed by new figures showing Britain has overtaken struggling Germany and China as the top destination for investment.
But Marco Amitrano, the British boss of PwC, the accounting giant that organized the poll, said there was “no room for complacency.”
Mr Amitrano told the Mail that early “over-optimism” about a new government had been followed by “a bit more doom and gloom and questions about whether the path to growth will actually be there”.
“What we need now is a level of consistency – no more big shocks, no more big surprises from the government – to find the confidence that comes with a solid path to growth,” he said.
And a senior business leader, who did not want to be named, told the Mail that a 'fault line' had emerged between business and government over the budget – which needs to be repaired for fear of a 'rift'.
Meanwhile, Ms Reeves dismissed suggestions that she was snubbed at the World Economic Forum because she was not given a place on the main agenda, prompting event organizers to vehemently deny the claim.
Other high-profile names to have been given a place on the WEF include former England football captain David Beckham.
Rachel Reeves flies to Davos tomorrow to try to revive her faltering growth ambitions, amid claims a 'fault line' has emerged between Labor and business
Other high-profile names to have been given a place on the WEF include former England football captain David Beckham
The Finance Ministry said the Chancellor had been asked to take part in the main agenda in Davos – the Swiss mountain resort where the annual meeting takes place – but decided instead to focus on closed meetings, including a high-level meeting with financiers, organized by the American banking giant JP. Morgan.
“She wants the CEOs and global investors representing some of the biggest global companies to know that Britain is on the rise,” a spokesperson said.
A WEF spokesperson, Yann Zopf, said there was strong interest among CEOs in meeting the chancellor.
“The UK is a major player on the world stage and we are pleased that the Chancellor is joining us in Davos this week,” he added.
Yesterday, a separate – and more recent – poll showed UK consumer confidence at its lowest level in a year, a fresh setback after the economy stagnated in the second half of last year.
The research from financial data firm S&P Global shows that 2025 started off on a “bleak note”, with households forgoing major purchases and becoming more concerned about their jobs following budget measures that will increase the cost of hiring people.
Business attitudes towards Labor have deteriorated since Labour's £25 billion raid on employers' national insurance in the Budget, as well as the imposition of a sweeping workers' rights package and a sharp rise in the minimum wage.
The PwC poll, conducted in October and November last year, provided a boost for Britain by revealing that Britain is now seen as the world's top investment destination by 14 percent of global CEOs.
The chancellor will arrive at the annual meeting of business and political leaders buoyed by new figures showing Britain has overtaken struggling Germany and China as the top destination for investment
That was the same level as last year, but saw Britain rise from fourth to second place – with the US at the top – after the scores for Germany and China fell.
At the same time, the poll last October and November showed that 61 percent of British executives were optimistic about British growth over the next 12 months, up from 39 percent a year earlier.
But longer-term confidence over the next three years has fallen, from 61 percent to 57 percent.
Mr Amitrano said the findings represented 'a vote of confidence in Britain as a place for business and investment'.
But he added: 'There is no room for complacency. Reasserting the UK's place on the world stage requires a tangible path to growth and a consistent government approach to business and investment.”
Mr Amitrano told the Mail the NI increase was not a complete shock but was 'on the more disappointing side of surprises'.
'It wasn't just the employers' NI, but the things that came with it: the feeling that there were going to be higher rates for business, with a lack of clarity about where the growth path was that was going to pay for all that.
'It is now more important than ever that business and government enter into discussions with each other. All commitments to stimulate growth and investment must now be translated quite quickly into solid moments of growth.'
Among the business leaders Reeves will meet are JP Morgan boss Jamie Dimon (left) and Goldman Sachs boss David Solomon (right), two of the most powerful bankers in the world.
Last night the government said ministers would 'beat the drum for Britain' in Davos.
Ms Reeves said: 'Business leaders and investors need to know that Britain is where their businesses will flourish, so I am meeting them personally in Davos to make our case. We are one of the most exciting places in the world for them to put their money, with a history of innovation, a skilled workforce and a stable government that supports business.”
The business leaders she will meet include JP Morgan boss Jamie Dimon and Goldman Sachs CEO David Solomon – two of the most powerful bankers in the world.
The Chancellor will also speak at public events hosted by Bloomberg and the Wall Street Journal, as well as attend a private CBI lunch with British business leaders and global investors.
Business Secretary Jonathan Reynolds, who is also present, said: “Britain is back in business under this government.”
