Business Leaders Should Scrutinise Reform UK Economic Agenda Warns Labour Select Committee Chair

Business leaders are justified in their apprehension regarding Reform UK’s potential ascent to power and must demand rigorous scrutiny of the party’s economic policies, according to Liam Byrne, the Labour chairman of the Commons business and trade select committee.

Byrne, who previously served as a Treasury minister, emphasised that if Reform UK emerges as the predominant right-wing political force in Britain, the business community will need comprehensive understanding of the party’s economic framework. The former minister cited economic evidence suggesting that populist, interventionist administrations typically prove catastrophic for economic stability and growth.

The warning arrives at a critical juncture, with Reform UK leading in opinion polls whilst both Labour and the Conservative Party work to rebuild confidence amongst the business community. Byrne characterised business leaders as “fairly terrified” of the party, noting that the current environment already presents substantial risks without additional political uncertainty.

Reform UK, under the leadership of Nigel Farage, has intensified efforts to engage with the corporate sector, though some chief executives remain hesitant. Zia Yusuf, the party’s head of policy and former chairman, participated in a question and answer session at the Confederation of British Industry’s annual conference in November. The appearance represented a strategic attempt by Reform UK to court corporate leadership whilst providing the CBI an opportunity to examine the party’s policy positions on behalf of its membership.

Richard Tice, Reform’s deputy leader, has scheduled a keynote address at an investor event in the City during January, hosted by VSA Capital. The event, which Tice has branded part of the party’s “bacon and egg round tables” engagement strategy, aims to convene businesses, investors and policymakers during what organisers describe as a crucial period for the UK economy. Tice plans to outline his perspective on financial policy and the economy’s future trajectory.

Byrne expressed particular concern regarding Reform UK’s spending proposals, describing them as unclear and drawing parallels to the brief and turbulent premiership of Liz Truss. The comparison references the market turmoil that followed Truss’s unfunded tax cuts and spending plans, which precipitated a sharp decline in sterling and gilt prices before her resignation after just 49 days in office.

Responding to the criticism, Tice maintained that both the Conservative and Labour parties had severely damaged public finances and that economic conditions had deteriorated since the 2024 general election. He argued that only Reform UK possesses the resolve to control public spending, thereby reducing the nation’s borrowing costs. Tice asserted the party would eliminate unnecessary regulations that impede growth and increase living costs before implementing tax reductions to stimulate economic expansion.

The debate underscores growing tensions within Britain’s political landscape as Reform UK gains traction with voters whilst the established parties grapple with economic challenges and declining public confidence. For investors and business leaders, the coming months will prove critical in assessing whether Reform UK’s economic platform represents a credible alternative or poses additional risks to market stability.