Rishi Sunak’s government spent more than £260,000 of taxpayers’ cash on an event to woo business leaders after the Tories crashed the economy, it can be revealed.
The PM invited around 200 of the country’s “highest profile” chief executives to the gathering in London last month.
The Business Connect event was designed to repair relations as the Conservatives faced criticism for their disastrous handling of the economy.
Just a few years after Boris Johnson famously declared “f**k business”, Mr Sunak told the City bosses his government was “unashamedly pro-business”.
“We want small and big businesses to know this Government has got your back… your businesses create the jobs and prosperity our country depends on,” he added.
In answer to a parliamentary question, business minister Nigel Huddleston said: “The delivery of Business Connect in April 2023 cost the Department for Business and Trade £260,551.32.”
He said the event was funded from the department’s “budget for priority events”.
Labour’s Shadow Chief Secretary to the Treasury Pat McFadden said: “The Tories crashed the economy, undermining business confidence and leaving families footing the bill with higher mortgage rates.
“Now they are papering over the cracks of their 13 years of economic failure by using taxpayers’ money on meaningless photo opportunities.
“Labour would engage meaningfully with businesses to create the good jobs and growing economy Britain needs.”
At the event, Mr Sunak was criticised for scrapping VAT-free shopping for foreign tourists today.
The boss of one of Britain's top fashion labels warned he had made the UK “the least attractive shopping destination in Europe”.
When Mr Sunak was chancellor, he removed a tax break for holidaymakers that allowed them to claim back VAT on items brought in the UK and then taken home.
Gerry Murphy, the chairman of luxury retailer Burberry, branded the tax a “spectacular own goal”.
He told the PM: “It is somewhat perverse that on the day that we left the single market, a decision by, I think it was by you as chancellor, to remove the VAT refund for tourists made the UK the least attractive shopping destination in Europe.”
Mr Murphy said leaving the EU 'has had a significant friction effect on trade' and that the UK was seeing 'by far the weakest recovery' after the pandemic among major economies.
In a virtual Q&A, former Dragons’ Den star James Caan tackled Mr Sunak over government support for the artificial intelligence “revolution”.
The businessman asked the Prime Minister why the Government was not doing more to back the technology.
A government spokesman said: “Growing the economy is one of the Prime Minister’s top priorities and understanding business priorities is key to delivering that.
“Business Connect brought 200 of the UK’s highest profile CEOs and senior business leaders together with Government ministers for direct and detailed discussions on how to work together unlock opportunity, drive innovation, boost growth and create jobs.”
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