Business leaders from Britain's largest companies are warning that Westminster turmoil around Prime Minister Sir Keir Starmer is eroding investor confidence and risking the UK's reputation as a stable investment destination. Executives from FTSE 100 firms told the Financial Times that calls for Starmer's resignation, Wes Streeting's exit, and Andy Burnham's return to parliament have distracted the government from delivering promised economic action.

Chancellor Rachel Reeves welcomed Q1 growth of 0.6 per cent, but Sir Martin Sorrell of S4 Capital said Starmer hanging on "by his fingernails" is damaging the UK's image abroad. Justin King, former J Sainsbury boss, accused ministers of repeating the mistakes of the Conservative years. Francesca Carlesi of Revolut UK urged maintaining stability within the Treasury to protect the government's reform agenda.

Executives fear that legislative priorities like the financial services bill could stall and that any shift leftward would raise borrowing costs and weaken the pound. Theo Paphitis warned that inexperienced, ideologically driven politicians taking power would create economic chaos. Allan Leighton, Asda chair, said policies restricting growth matter more than who leads, while Richard Lightburn of MKP noted even a left-leaning PM could avoid a Liz Truss-style market shock.