The focus on the implications of the new Labour leadership continues following Jeremy Corbyn unveiling his shadow cabinet.
British business leaders launched a “scathing” attack on Corbyn and warned his anti-enterprise government would derail economy and cost jobs, according to The Mail. The appointment of left-winger John McDonnell as shadow chancellor sparked fears of higher taxes, more borrowing and an “all-out assault on business, wealth and aspiration”, the paper continued.
The Telegraph adds that business has given the new left-wing team a “lukewarm” reception. “The country needs a strong Opposition, and businesses will want to see the new Labour leader and his team supporting a pro-enterprise agenda that will spur growth and create jobs up and down the United Kingdom,” said John Cridland, outgoing director general of CBI. “Businesses are unwavering in their support to get the UK’s deficit down, and at the same time they are ready to work with politicians to come up with innovative ways of delivering high-quality public services with less money.”
A new report has highlighted three sectors which will be hit hardest by the introduction of the new Living Wage, with retailing chief among them (The Times) (The Telegraph). The Resolution Foundation said the hospitality sector and support services companies would also suffer from the Chancellor’s plans to raise the minimum wage. The research added that while the policy is expected to lift the pay of around six million workers, 46% (about 2.7 million) of all those affected worked in just three sectors.
Elsewhere, in company news, The Telegraph reports that profits more than doubled last year at Poundworld as UK consumers continued “to count the pennies”. The discount retailer controlled by PE group TPG also confirmed it was on track to double the number of stores in the next five years (The Financial Times). Read the full story at thegrocer.co.uk here.
Drambuie owner William Grant & Sons unveiled an increase in profits despite slowing sales (The Guardian). The group, which also produces Glenfiddich, Hendricks gin and Tullamore Dew Irish Whiskey, said profits had risen 4% to almost £140m even as sales plunged 17% to £933.2m as Scotch whisky exports fell 7% in value.