Labour manifesto 2017: 'Knee-jerk' policies get business thumbs down

Labour's manifesto has received the thumbs down from business leaders, who say the policies are "knee-jerk" and "far wide of the mark".

Any "bright spots" highlighted have generally been "eclipsed" by proposals for much higher levels of taxation and sweeping re-nationalisations, says The Independent.

Carolyn Fairbairn, director general of the Confederation of British Industry, said the policies “prioritise state intervention over enterprise, and fail to offer the pro-growth and competitiveness agenda the country so badly needs".

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Taken as a whole, the agenda is "far wide of the mark", she added.

Stephen Martin, director general of the Institute of Directors, said policies such as "banning zero-hour contracts, or introducing pay ratios for companies with government contracts, are worryingly knee-jerk reactions".

He added: "Individually, policies to renationalise the railways, water and sections of the energy industry, or to abolish tuition fees, may sound popular.

"But the costs would be staggering, the benefits unclear, and the related tax rises would make the UK a less competitive economy."

However, he did praise the commitment to "a sensible immigration policy and investment in infrastructure".

Adam Marshall, director general of the British Chambers of Commerce, identified "bright spots" including reforming “Britain’s broken business rates system” and proposing an immediate guarantee for EU nationals currently in the UK.

But he added: “High personal taxation, sweeping nationalisation and deep intervention in business decision-making are not the hallmarks of an ambitious and enterprising society."

On the other side of the business fence, unions were broadly supportive of the proposals, especially a guaranteed £10-per-hour minimum wage by 2020 and a ban on zero-hours contracts.

TUC general secretary Frances O'Grady said Labour's commitments to workers' rights and higher wages "would make a real difference to millions of workers", says Sky News.

However, it appears the most powerful union leader in the country does not believe the manifesto will win out on 8 June.

In an interview, Len McCluskey, general secretary of Unite, said Labour "would have fought a successful campaign if it keeps 200 seats, although that would be the party’s worst result since 1935", says The Guardian.