Business optimism is plunging and no wonder. With all the doom and gloom, has Labour forgotten its mission of growth? Asks Kiki McDonough
Business confidence plunged last month, according to the Institute of Directors’ latest closely-watched survey.
Optimism in the economic outlook fell to its lowest level since the Liz Truss debacle of 2022, with the index dropping to -38 in September, down from -12 in August.
I can’t say I’m surprised. The entire business community is on hold until this month’s Budget is out of the way. While I understand the desire to apportion blame where it’s due to the last government, quite why someone in Downing Street thought it was a good idea to spread as much doom and gloom as possible I can’t fathom.
It’s left everyone I know frozen: no one knows whether to invest or hire. A government that promised to put growth above all else has managed to scare everyone to death. The efforts to rein that in a bit at the Labour Party Conference and focus on the opportunities that lie ahead fell largely on deaf ears.
It’s not just the threat of new taxes, though that is extremely unwelcome given that Tories left them at a 70-year high.
It’s also the promise of a new package of workplace regulations. Of course all responsible employers want to see staff properly protected and are willing to engage with sensible proposals from Labour. But the commitment to day one employment rights – the effective end of the probationary period – seems unwise. At the moment, if a probationary period doesn’t work out you can shake someone’s hand, wish them all the best and part friends. Now, you’ll have to give written warnings to a new employee who isn’t cutting the mustard – horrible things to write and to receive. It’s a recipe for a less happy workplace and a barrier to hiring.
The four-day working week also seems like a misguided idea. It’s hard to see how it will work effectively in my industry, retail, where we are open to customers six days a week.
Ministers should focus on positive announcements that will boost business and enterprise – like reforming the planning system to allow more housing to be built, a move I welcome and one that will create well-paid jobs and provide the next generation with a chance at owning a home. Please, let’s have more of this and less of the scaremongering.
No more red cards
I’m a great football fan and my team is Liverpool FC. We’re told that a new football regulator is needed to oversee the game. I don’t think this is necessary. It’s bound to spiral into yet another interfering quango employing dozens of people at great expense, and as far as I can see football regulates itself pretty well as it is. Of course, we had the proposal for a Super League, but that quickly went pear-shaped because of the reaction of fans. Why create a bureaucratic new regime that risks spoiling the freedom of the game?
Ballet in the 21st century
I am a trustee at a ballet company called the New English Ballet Theatre, started by its artistic director Karen Pilkington-Miksa. Founding a successful new ballet company in the 21st century is no mean feat, but Karen has done it, and established it as a charity as well. It gives new choreographers, musicians and dancers a chance to shine. The company does extraordinary things like set Genesis songs to ballet. I’m looking forward to its gala evening at the Royal Academy of Dance in Battersea tomorrow.
A bit of Christmas sparkle
Christmas is the busiest time of year for any jeweller and I love the run-up to the festive season. My shop off Sloane Square is busier than ever and I love helping people pick out Christmas gifts for their loved ones. People often ask me what they should choose for their first piece of jewellery, and I always say earrings. They are nearest the face and the coloured gemstones I like to use are designed to lift any seasonal gloom.
Gimme gimme gimme more Abba
My two sons took me to see Abba Voyage at the Queen Elizabeth Olympic Park for my birthday recently. I was a bit sceptical about attending a concert performed by AI holograms, but I was blown away. It was one of the best shows I’ve ever seen and I highly recommend going. On the way back, we spoke about how AI is going to change things. It will soon be possible to recreate a famous football match or a celebrated theatrical production. The sky is the limit for this technology.
Kiki McDonough is founder and creative director at Kiki McDonough