Sunak’s Business Connect: News and opinion round-up

Reuters – I've got your back: UK's Sunak tries to reboot business ties

"We want businesses small and large to know that this government has got your back," Reuters reports Prime Minister Rishi Sunak telling 200 assembled business leaders at Monday’s Business Connect. 

Following extensive damage to the relationship between business leaders and Sunak’s Conservative Party dealt by both Boris Johnson and Liz Truss, Reuters reports, the conference was designed to repair relations – an opportunity to remind business leaders that economic recovery is among Sunak’s top priorities. 

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City A.M. – Analysis: Sunak's cringey love-in reminds us he's a PM who wants to do business 

City A.M. compared Sunak’s appearance at the Business Connect conference to Starmer’s on the factory floor, with Sunak coming out on top in the credibility stakes. 

“His enthusiasm for discussing the nuances of everything from funding AI research, to financial regulatory reform, was entirely genuine. His eyes practically lit up,” City A.M. reported. 

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The Independent – Brexit has left UK 'worst shopping destination in Europe', business chief tells Rishi Sunak 

Burberry Chief Gerry Murphy questioned the removal of VAT refunds for tourists, which were briefly revived by former chancellor Kwasi Kwarteng. 

“Leaving the EU has had a significant friction effect on trade, hopefully not forever ... but it is the case it was a drag on growth,” Murphy said, in front of an audience of 200 fellow business leaders. “So we ask you to look at this specific one (VAT), this is a spectacular own goal, one that can be reversed by a decision from you or from the chancellor.”

Leaders in retail and tourism argue that the removal of VAT refunds makes Britain 20% more expensive for consumers in their sectors, The Independent reports, while the government holds onto £2bn a year by scrapping the VAT refunds. 

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The Guardian – CBI scandal could deter women from joining City, top financier tells Sunak 

The Guardian reported on Business Connect in its live blog, covering the VAT refund discussion above, and on John Crace’s politics sketch.

In a third piece, The Guardian reports on discussion about the CBI crisis during the conference’s Q&A session between 200 business leaders and Rishi Sunak. 

Fund manager Helena Morrissey, The Guardian reported, told Sunak she was concerned that the scandal at CBI may deter women from the sector. Sunak responded by citing his two daughters as reason for him to pursue equality – rather than the 30m+ women in the UK.

Chancellor Jeremy Hunt later spoke with journalists on whether the CBI scandal would spell the loss of a direct line between business leaders and government. 

“We would like to be able to engage with business through a representative body when we can, but we’re not stopping. We’re perfectly capable of engaging business without those [bodies]. And that’s what we’ll continue to do.” 

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