Rachel Reeves will jet into Davos tomorrow to try to revive her stuttering growth ambitions amid claims that a ‘faultline’ has opened up between Labour 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 a top investment destination.
But Marco Amitrano, the UK boss of PwC, the accountancy giant which organised 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 pathway to growth is really going to be there’.
‘What we now need 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 pathway to growth,’ he said.
And a senior business leader, who did not wish to be named, told the Mail that a ‘faultline’ had developed between business and government over the Budget – which must be repaired for fear of opening up a ‘fracturing’.
Meanwhile, Ms Reeves brushed off suggestions that she has been snubbed at the World Economic Forum by not being given a slot on the main agenda – prompting the event’s organisers vehemently to deny the claim.
Other high profile names that have been given a slot at the WEF include former England football captain David Beckham.
The Treasury said the Chancellor had been asked to participate in the main agenda at Davos – the Swiss mountain resort that hosts the annual gathering – but decided instead to focus on private meetings including a high-level get together with financiers hosted by US banking giant JP Morgan.
‘She wants the CEOs and global investors representing some of the biggest global companies to know that the UK is on the up,’ a spokesperson said.
A WEF spokesman, Yann Zopf, said there had been a high level of interest from chief executives in meeting the Chancellor.
‘The United Kingdom is a key player on the global stage and we are happy to have the Chancellor with us in Davos this week,’ he added.
Yesterday a separate – and more recent – poll showed UK consumer confidence at its lowest level for a year, a fresh setback after the economy stagnated in the second half of last year.
The survey from financial data firm S&P Global said 2025 began ‘on a gloomy note’ with households holding back on major purchases and becoming more worried about their jobs after Budget measures that will add to the cost of employing people.
Business attitudes towards Labour have darkened since Labour’s £25 billion raid on employer national insurance in the Budget – as well as the imposition of a sweeping package of workers’ rights and a sharp rise in the minimum wage.
PwC’s poll, conducted in October and November last year, delivered a boost for Britain by revealing that the UK was now seen by 14 per cent of global chief executives as the world’s most important investment destination.
That was the same level as last year but saw Britain surge from fourth to second place – with the US at the top – after the scores for Germany and China plunged.
At the same time the poll – conducted last October and November – revealed that 61 per cent of UK chief executives were optimistic about UK growth over the next 12 months, up from 39 per cent a year earlier.
But longer term confidence over the next three years has declined, from 61 per cent to 57 per cent.
Mr Amitrano said the findings represented ‘a vote of confidence in the UK as a place for business and investment’.
But he added: ‘There is no room for complacency. Reasserting Britain’s place on the global stage requires a tangible path to growth and a consistent government approach to business and investment.’
Mr Amitrano told the Mail that the NI hike was not a complete shock but was ‘on the more disappointing end of surprises’.
‘It was not just employers’ NI but the things that went along with it – the feeling that there was a bigger tariff on business with a lack of clarity about where the growth path was that was going to pay for all that.
‘It’s now more important than ever that business and government are talking to each other. All of the commitments to boost growth and investment do have to fairly quickly now turn into solid growth moments’.
Last night, the government said ministers would be ‘banging the drum for Britain’ at Davos.
Ms Reeves said: ‘Business leaders and investors need to know that the UK is where their businesses will flourish, so I’m meeting them face to face 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 backs business.’
Among the business leaders she is due to meet are JP Morgan boss Jamie Dimon and Goldman Sachs chief David Solomon – two of the world’s most powerful bankers.
The Chancellor will also speak at public events hosted by Bloomberg and the Wall Street Journal as well as attending a private CBI lunch with UK business leaders and global investors.
Business secretary Jonathan Reynolds, who is also attending, said: ‘Britain is back in business under this government.’