Minister jokes Davos ‘just like Labour conference’, and says firms back Reeves

A minister has joked that Davos is “just like Labour party conference”, and said the Chancellor Rachel Reeves got a “very warm response” from business leaders.

Minister for industry Sarah Jones said at a Fabian Society’s conference on Saturday that the government needed to “talk in primary colours” about its agenda, after making “difficult” Budget changes to national insurance.

Jones said at a panel event on the economy that she had just returned from many meetings with representatives of large global companies at the annual summit of global business, political and other leaders in the Swiss alps, which is often criticised on the left.

The Croydon West MP made the eye-catching parallel based on similarities in how “everyone is milling around” trying to get into the best events, and with access reliant partly on different kinds of passes.

She said one Davos event saw former Downing Street press chief Alastair Campbell playing the bagpipes, in a room with not only his former boss Tony Blair but also the Microsoft founder Bill Gates.

READ MORE: Streeting sounds alarm over ‘corpses of progressive political parties’ across West

Jones said that Rachel Reeves had enjoyed a “very warm response”.

The comments come after a bumpy ride for Reeves in recent weeks, with media and opposition criticism of her stewardship of the economy after economists suggested a recent rise in borrowing costs could risk Labour breaching its  fiscal rules.

The wobbles sparked a string of recent policy announcements and briefings about efforts to drive growth in a bid to shore up economic credibility, as well as signals the goverment would slash spending further if needed to hit the fiscal rules.

Reeves also used a Davos interview with the Wall Street Journal to signal Labour would make part of its non-dom tax loophole clampdown “more generous” to non-doms., having “listenined to the concerns that have been raised by the non-dom community”.

Davos leaders ‘responsive’ to Labour agenda

Jones added later that business leaders attending were “very responsive” to both Reeves and the government’s overall agenda. Jones said policies like planning reform went down well.

“We are working to put in place the architecture that we need to grow the economy in the long-term, whether that’s industrial strategy sectors, professional services, financial services, creative sectors.”

She also highlighted the government’s steel strategy, with plans to invest £2.5bn in growing the steel industry.

For more from LabourList, subscribe to our daily newsletter roundup of all things Labour – and follow us on  Bluesky, WhatsApp, Threads, X or Facebook .

She acknowledged Budget changes to national insurance had been “difficult”, adding: “We’ve heard and we’re talking to business about the impact of that shift.”

Businessman Mike Soutar, one of the judges on TV show The Apprentice, who was also on the panel, warned the hikes to employer NI would have an “echo through the economy” and businesses would “spasm”. But he said it was not a “terminal” problem for the economy long-term.

Jones told Fabian attendees that while Reeves “hears that criticism”, she had told Davos guests that “what she doesn’t hear is any alternative solution put forward” to fill an in-year Budget shortfall.

Reeves had also suggested we can “draw a line under that Budget”, and it was not something the government would have to do again.

“Do we now need to put forward our agenda and talk in primary colours…yes we do.”

• SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
• SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
• DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage.
• PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
• ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].