Business leaders attending the Conservative Party conference in Birmingham signaled a cautious openness to re-engage with the party, despite previous skepticism stemming from recent political and economic developments. The reception followed a speech by Conservative leader Kemi Badenoch, who emphasized the party’s commitment to supporting business as a driver of growth and a “force for good.”

At a lunch event held during the conference, Badenoch acknowledged that the party had failed in recent years to adequately demonstrate its support for the business community. Her remarks, which addressed issues such as job creation, regulatory reform, and reducing energy costs, were met with approval from attending executives and public affairs professionals. Several attendees noted the contrast with the Labour Party conference in Liverpool the previous week, where Labour leader Andy Burnham’s plans left some business representatives unconvinced and concerned over potential tax increases and a more interventionist state role in the economy.

Badenoch and Andrew Griffith, the party’s shadow chancellor, rejected Burnham’s emphasis on government-led growth, arguing instead that it is primarily driven by individuals and businesses. Griffith, a former Sky executive, outlined proposals that include a wide-ranging deregulation agenda and reforms aimed at the housebuilding sector, projecting these could reduce new home prices by as much as £50,000. His proposals also advocate for scrapping certain environmental regulations and public bodies, as well as supporting infrastructure developments such as a third runway at Heathrow Airport.

Despite the positive response to Badenoch’s message, several senior business figures acknowledged that the Conservative Party still faces significant challenges in restoring trust after years marked by leadership instability and the fallout from the 2022 “mini” Budget, which damaged the party’s economic credibility. One senior executive noted that businesses had largely disengaged from the party in recent years, though attitudes appear to be shifting slowly.

The Conservative efforts to strengthen ties with the business sector include a dedicated “small business day” featuring high-profile entrepreneurs, aiming to counter the appeal of the right-wing Reform UK party, which has sought to attract self-made business leaders. However, some executives expressed concerns about Reform UK’s more extreme rhetoric and its potential to alienate moderate business supporters.

Additional points of tension include the Tories’ stance on post-Brexit trade arrangements with the European Union. The party has pledged to reverse aspects of recent government efforts to ease trade barriers, particularly in the food and energy sectors, a position that some business delegates view as conflicting with commercial interests.

Labour’s approach to employment and workers' rights legislation also emerged as a focal point of critique from Conservative-aligned business figures. They cited the Employment Rights Act and the Renters’ Rights Act as policies that have increased uncertainty and costs for employers, influencing some donors’ decisions to revisit their support for the Conservatives.

While the broader political landscape remains unsettled, several respondents indicated a pragmatic view of the options available. According to Lord David Ross, co-founder of Carphone Warehouse and Conservative donor, the business community currently sees limited alternatives, suggesting a willingness to engage with the party if it demonstrates seriousness about enterprise and economic growth going forward.