Kemi Badenoch speech to the British Chambers of Commerce - June 26

Today [26^th June 2025] in a speech to the British Chambers of Commerce 2025 Global Annual Conference, “Where's the Growth?” in London, Kemi Badenoch, Leader of the Opposition, said:

“I'm delighted to be speaking to the British Chambers of Commerce, again. When I spoke here last year during the election, I talked about the choice between two competing visions for economic growth. One of them was that government knows best, the other that business knows best how to create growth.  

My vision, the Conservative vision, that it is not government that creates growth, it is business.  But you will all know that we lost that election.

There were many reasons for that loss. And one of those reasons was that we were no longer trusted. It's quite clear we got enough things wrong during our time in government that people want to change.

And we got that change.  I very was surprised, actually I wasn't that surprise, when I heard the Prime Minister spoke to you this morning, he spent a lot of time criticising the previous government, that is what politicians do. So, that I'm here, I'd like us instead to take a long hard look at the country after 12 months of Labour in office.

Since July we've had, inflation higher, unemployment up, growth halved, I mean this is change.  But it's change for the worse. And it didn't have to happen.

Let's start with the jobs tax. That rise in national insurance is killing jobs, it is making it impossible for businesses to grow.

Then we see family businesses, which form the backbone of many communities have been hit increased taxes. More of the next generation will have no alternative but to close rather than continue running the family firms. Family Business UK warn this could lead to over 125,000 job losses. That is a lot.

And instead, we have 27 new quangos, that are also creating more bureaucracy and paperwork for businesses.

But this isn't just about statistics and statements and government changes.  This matters because it is about real people. It is people and businesses who are hurting, when government is making the wrong decisions.

The company that never takes on more staff because it is just too difficult.

The person who doesn't get the opportunity to buy their own house because they don't make enough.

The apprentice, who never gets the right start in life because the government didn't get its act together.

And we can't let that happen.

So, today I want to talk about our economic crisis, but also how to fix it, with jobs, jobs, jobs for all those people and businesses who are affected.

And I want to talk about how we answer a fundamental question about what our country is for.

A question which this government should be answering but has failed to do.

A question which we won't be able to duck forever. None of us here.

And that question is whether we are for the makers or for the takers.

Whether we are for those who work hard, who get on, who build businesses, who make things happen, whether it's a plumber or a nurse, or those who don't.

And I know whose side I am on.

But let me talk first about the biggest political issue of this week: welfare.

Our debt interest is well over £100 billion a year, welfare spending is out of control, the state is bloated, productivity has flatlined, and the economy is stuck in first gear.

Our country is living beyond its means. We are spending more than we're earning, and it means the cost-of-living crisis for working people is getting worse and worse.

We need a totally different approach. One that ensures that things are easier for the makers – the people who work hard, create wealth and jobs, and deliver frontline public services.

Because currently this country has too many people who are taking. Whether it is those who sit at home with the curtains drawn while others go to work; to those who skip the queue and arrive here illegally, only to be given privileged access to social housing, the NHS and our generous welfare system.

Yet, despite having a supermajority in Parliament, the Prime Minister is in the fight of his life. He is trying to save some of the government's welfare changes, changes that don't even cut the overall welfare budget. They only slightly slow the rate of increase, and this is because his MPs are too scared to make difficult decisions. But we have to make difficult decisions if we are to sort the economy.

Britain needs real welfare reform if we're to incentivise takers to become makers, if we're to get people into jobs.

By 2030, one in every four pounds raised through income tax will be spent on health and disability benefits alone. That's not even touching the other benefits. That's more than the entire UK defence budget. In an increasingly dangerous world, that is simply unsustainable.

We need a fundamental rethink about which conditions should qualify for long-term financial support. And I was shocked to hear that the majority of new disability claims in this country are now for low-level conditions like anxiety.

Research published today by the Centre for Social Justice shows that if we save and focus on supporting those, with those really severe conditions — we save £9 billion a year from the welfare bill by 2029/30. That's where we should be focusing our efforts.

That is a serious amount of money, and we can transform so many lives at the same time. But by focusing on treatment to manage less severe conditions, we can also get more people back into work. That's the crucial thing.

And I know it won't be easy. In fact, things are likely to get worse, before they get better.

Because with such a large Parliamentary rebellion at the moment, I'm expecting U-turns on other things like the two-child Benefit Cap.

This means more spending, more borrowing.

Protest parties like Reform are doing well in the polls by promising even more benefits.

The fact is no one except my party, the Conservatives, is talking about reducing welfare and job creation. 

Under my leadership, this is new leadership, the Conservative Party will not shy away from confronting the tough questions that need answering and, more importantly, providing the solutions.

That is the role of a constructive Opposition.

And when business leaders like the CEO of Curry's, for example, say government policy is ‘actively working against job creation', we should take note.

Business leaders tell me Labour's Employment Rights Bill will make things worse. That the Bill could cost the UK up to £5 billion a year in lost economic growth.

That Bill is 300 pages of red tape which nobody running a business asked for.

And we know who will pay the price, it will be young people looking for their first break.

It will be those who are left behind because hiring them becomes too risky and too expensive.

And it will be smaller businesses, those who cannot afford a legion of HR officers and compliance officers. They're the people who are going to pay the price.

But I'm not just here to talk about problems, everybody can do that, we can all point out problems, you want solutions.

So, what will we do?

I have said we will remove Labour's red tape.

We will remove the ability to strike with zero warning, something businesses cannot prepare for.

We will remove the trade union ‘right to roam' in business premises.

We will remove the new ‘Fair Work Agency', another quango, that is designed to hound British businesses, even when no employee has raised a complaint.

How did we get to a point where a government felt it could impose these measures on business?

We have forgotten a fundamental truth that every pound spent by government, every benefit paid – it all comes from the makers.

Makers who work every hour they can to make ends meet; provide for their families and keep their business and public services afloat.

Makers are the foundation of our prosperity. 

And we are allowing too many people to become takers not makers.

It has led to a dangerous shift in thinking.

Too many now see business as something to extract from rather than invest in.

They want to tax wealth before it's even created.

They've forgotten that every job, every innovation, every export success comes from people in rooms like this, who are taking risks.

This is a crisis. And the question before us is simple: who has credible solutions?

I know many of you will be sceptical of politicians' promises.

But look at who we are, not just what we say.

My Shadow Chancellor, Mel Stride, built and sold a successful international business.

My Shadow Business Secretary, Andrew Griffith, he chaired a FTSE 100 company.

Across our party, you will find people, entrepreneurs who've taken risks, navigated regulations and created jobs.

And for too long, we've been caught in a loop where politicians don't want to make tough choices. Everybody wants to know how their problem will be solved this week, but who is securing the 10-year horizon.

We are at a critical moment. People are feeling real pain. Cost of living, high bills, low pay, high taxes. They need a way out.

But the crisis isn't just in the numbers. It's in the mindset. Just look at the spending review two weeks ago.

Gone is the political imagination to even consider a future where the public don't hand a greater and greater share of their hard-earned money for the state to give them just little improvement in return.

And too many in politics think growth comes from government. From regulators, and central planners. I don't. I never have.

There is a gap in the market for a serious, centre-right plan. One that understands the power of the private sector to transform lives. One that raises aspiration and delivers higher living standards.

And that is the difference between us and our opponents. Because Labour sees business as something to regulate and tax. Reform wants to turn back the clock and nationalise utilities.

We see you business, as partners in building Britain's future.

You know when spending isn't delivering value. Government needs to know the same.

This is about running government like you run your businesses: focused on outcomes, not process.

And I've seen your regulatory burden firsthand. I was the business secretary, I saw what people complain about day after day. The endless forms. The duplicated reporting. The compliance costs that add nothing to productivity. And I was Business Secretary, I cut it back. Under my leadership of the Conservative Party, I promise we will do even more.

You tell me you can't find staff while we're paying people not to work. That ends under my leadership.

And yes, we will cut taxes, but we'll do it responsibly.

I say to all of those people who worry about jobs, about growth, about public spending.

You can't sit back and hope it will sort itself.

You need to speak up.

You need to support policies that back enterprise and you need to challenge those who want more and more state control. Don't just wait for politicians to do it. You need to get on the pitch too.

And this isn't just about tax rates and red tape.

It's about the country we want to be. Not a Britain of committees and consultations. But one where people have the freedom to build, to create, to grow.

So, bring us your ideas, we're in Opposition, now is the time for us to get them. All of you who came into my office when I was in government, knew it was very hard to change when you are already in government. The train is already on its way. Get in while we are still at the station.

We want to hear your priorities, and we want to hear your solutions.

That is why I am personally inviting you all here to participate in this year's business and SME day at Conservative Party conference. It is going to be fun, but more importantly it's an opportunity to build, together, an exciting new policy programme to unleash the potential of business to transform the UK.

You don't need to be a Conservative to participate in Business Day, you just need to want what is best for your our country.

And you can trust me because of my personal record. That when it came down to it, I stood up for business in government, not just in opposition.

So, back us.

Tell your customers. Speak out. Put your name to the cause.

We can't turn this country around with polite applause or careful silence.

We need your voice.

We need your expertise.

We need your determination.

We all know, all of us in this room know, we can't work half the year for the taxman, while at the same time half the country doesn't work at all.

If we're going to turn takers into makers, the private sector is going to be absolutely crucial to delivering this.

Because no government bureaucracy has ever created long-term wealth.

No politician alone can build lasting prosperity.

That comes from business.

From innovation.

From risk-takers and job creators.

It comes from you.”