The former Manchester United and England footballer, who was one of Sir Keir Starmer’s most prominent backers during last year’s election, said Chancellor Rachel Reeves’ £25 billion tax hike had been poorly timed.
“I honestly don’t believe that companies and small businesses should be deterred from employing people,” Neville told Sky News. “I think the national insurance rise was one that could have been held back, particularly given the state of the economy.”
Neville – who has built a multi-million-pound business portfolio spanning property, hotels and football – said he had hoped for greater stability following Labour’s election victory. “It’s been a tough economy for a good few years. I thought that once there was a change of government, we would see things settle,” he said. “But it’s not settling here – and, to be fair, it’s not settling in many parts of the world either.”
While backing the government’s decision to raise the minimum wage by 6.7% in April to £12.21 an hour, Neville said businesses were under severe strain. “I don’t think we can ever criticise the government for increasing the minimum wage,” he said. “People should be paid more. But the national insurance rise is a challenge.”
Neville joined Labour in 2022, saying the party “has to come towards the centre”, and took part in a half-hour campaign film with Starmer in the Lake District during the election, describing the Labour leader as a “serious politician”.
However, his latest comments place him alongside other entrepreneurs and business leaders who argue that the higher cost of employment will make recruitment harder and slow economic recovery.
“It’s tough. It’s really, really tough,” Neville said. “The cost of products, utilities, rents – everything has gone up. Certain sectors are struggling to operate because of rising costs and because people are finding it harder to support local businesses.”
Jamie Young
Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the 'covid era' and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine's coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk
