A letter signed by 58 executives endorsing Labour ahead of the June 7th general election showed today how much the traditionally left-of-centre British party has dispelled business doubts over its economic competence.
But business chambers across the economy feel corporate Britain has paid dearly in terms of taxes and red tape under the government led by Mr Tony Blair, and say this must be addressed if Labour wins the election as opinion polls suggest.
In a round-robin letter to the Timesnewspaper, the executives praised Labour for securing a macro-economic environment that has brought the lowest interest rates and inflation for a generation.
Economic stability benefits citizen and business alike, the business leaders, who included seven executives from the FTSE 100 list of top companies, said.
We believe that business should support the party that since May 1997 has done so much to promote stable economic growth and a renewed spirit of enterprise.
New Labour, revamped in the 1990s to woo voters and the business community, now publishes a separate manifesto just for small businesses.
But business leaders remain concerned about a rising tide of red tape, a plethora of extra rights for workers, and the escalating cost of a national minimum wage as well as a range of higher taxes.
Mr Digby Jones, director general of the Confederation of British Industry warned at the weekend that 5.4 billion pounds in extra business taxes per year under Labour meant Britain's reputation as a low-tax economy was under serious threat.
Mr Anthony Goldstone, president of employers group The British Chambers of Commerce said steps must be taken to reduce the burden on business in the next parliament.
"Business will not be satisfied with half measures from the next government. The price UK Plc will pay for any continued increase in the burden of regulation is a long-term loss of competitiveness."
While the UK government boasts it has cut the main rate of corporation by tax to 30 from 33 per cent, revenue from the tax has actually risen over the 1997-2001 parliament, partly due to strong economic growth and the abolition of ACT.
British business also remains highly taxed relative to its main competitors. Revenue from corporation tax in Britain is around 14.5 per cent of gross domestic product, well above the United States' 10 per cent and Germany's 12.8 per cent.