Reeves would do well to heed Mr Asda's wise words

In the run-up to the last election, Labour devoted considerable time and effort to wooing business and the City.

- CHRIS BLACKHURST

Ministers wanted to convince them that the government could be relied upon, that it understood and appreciated the concerns of the private sector, that it could be trusted with the economy, with other people's money. The party has since done everything to undermine that faith – so much so that you wonder what its previous efforts were really for. Were they merely a cynical exercise in silencing potential critics and winning votes?

The clincher was the hike in employers' national insurance contributions, announced by Rachel Reeves in her first Budget. But there have been other missteps that have led to the draining away of the commercial community's confidence in the government. Key, and weighing increasingly heavily, has been the failure to get to grips with inflation and the rising cost of living, coupled with an unwillingness to tackle public spending. The debacle over welfare reform caused boardroom heads to shake in bafflement and frustration.

Businesses simply do not behave in such a fashion. They aim to balance the books, leaving something over for a healthy profit. They know how to operate within their means – and yes, sometimes that requires making difficult decisions. They also invest to grow; to put money into new products, marketing, staff, sites, equipment and supply lines; to improve efficiency and expand sales. Wisely, of course, but they are aware that this is what it takes.

Equally, they are at one with their audience. They have a good idea of how far they can go, of where the elastic limit lies.