The most searched questions about Peter Kyle — answered with data.
Why is business investment falling?
+
Business investment fell 2.1% in 2025/26, against a target of +5%. The employer NI rise increased employment costs, directly reducing capital spending. CBI data shows business confidence at -18, the lowest since 2020. Firms are prioritising wage cost absorption over investment in new plant, equipment, and technology.
What is the Industrial Strategy?
+
Labour's Industrial Strategy, published in October 2025, identified 8 priority sectors for government support: clean energy, advanced manufacturing, life sciences, digital technology, creative industries, financial services, defence, and agri-food. However, only 3 of these sectors — clean energy, life sciences and defence — have received committed funding packages. The remaining 5 sectors are still awaiting formal investment commitments.
Why are high streets still struggling?
+
The retail vacancy rate reached 14.2% in early 2026, with high street footfall down 6% year-on-year. Despite promises of business rates reform, the multiplier freeze has been accompanied by cuts to small business relief schemes. Higher employer NI costs have also forced many retailers to reduce staffing or close additional locations rather than invest in reopening vacant units.
What trade deals has Labour done?
+
Labour signed one trade agreement — with Gulf Cooperation Council countries — by May 2026. Two further agreements (India and Canada) remain in active negotiation but have not been concluded. The target was 3 signed agreements by this point. Meanwhile, UK goods exports to the EU fell 4% as post-Brexit trade friction continues to affect British exporters.
How do business rates affect prices?
+
Business rates are a property tax paid by commercial occupiers. When rates rise or reliefs are cut, businesses pass those costs to consumers through higher prices. The British Retail Consortium estimates business rates add approximately £2.80 per household per month to the cost of goods and services. With reliefs cut and the multiplier maintained, this pass-through cost continues to rise.