Prominent entrepreneur and Phones 4u founder, John Caudwell, has issued a stark warning to the Labour government, stating that the business community's goodwill is rapidly diminishing. Writing on Thursday 18 December 2025, Caudwell argues that despite some positive moments, the recent Budget highlighted a fundamental failure to foster the growth Britain desperately needs.
A Budget of Lost Opportunities and Confusion
Caudwell, who built his mobile phone empire from scratch, states that small firms require predictability, fair taxation, and a system that rewards hard work. He contends that instead of providing this stable foundation, the current approach sows confusion. He points to specific policies that he believes are counterproductive.
The new sugar tax on milkshakes is criticised for lacking a comprehensive strategy to tackle unhealthy foods burdening the NHS. Uncertainty around electric vehicle incentives and what he calls punitive taxation are seen as discouraging adoption. Most critically, he highlights the Employment Rights Bill, arguing it will make employers more cautious, discourage hiring, increase costs, and ultimately deter inward investment.
"If I were building Phones 4u under these proposals, I would hesitate before taking on that next employee," Caudwell writes, emphasising that such an agenda helps no one.
The Missing Growth Strategy: Efficiency and Inward Investment
Caudwell asserts that the government is mirroring irresponsible business practice by seeking to raise taxes instead of improving efficiency. He estimates that reducing public spending by just one per cent through better use of AI, technology, and accountability could save around £12bn.
The core of his critique, however, is the absence of a serious plan to boost productivity and attract high-value investment. He proposes a concrete solution from his "Caudwell Strong Britain" report: a dedicated government unit staffed by 20 seasoned business negotiators.
This unit would proactively identify global companies for relocation or expansion into the UK, negotiate tailored packages—such as reduced corporation tax linked to job creation and salary levels—and secure high-value jobs and new industries at no upfront cost to the taxpayer.
What Britain's Entrepreneurs Really Want
Caudwell recalls the environment that allowed him to build a company employing over 10,000 people in the UK: predictability, fair taxation, and reward for hard work. He insists today's small businesses desire the same fundamentals, not political extremes or the fear of long-term decisions being undermined.
"I do not support political parties. I support policies," he states, revealing he backed Labour at the last election as the only viable option, hoping to engage constructively. However, he warns that goodwill is finite.
The government must stop chasing headlines and start chasing growth, rediscovering the spirit that once made Britain the natural home for enterprise. For Caudwell, the time for a nation determined to grow again is now.
