Top Labour donor threatens to quit the party over Rachel Reeves’ Budget (Image: Getty)
Top backer and former nightlife adviser to the Mayor of Greater Manchester, Sacha Lord, has urged the party to act “before irreversible damage is done”.
The party member of four years quit his advisory role less than a week ago and is now considering leaving Labour altogether due to Budget leaving “thousands more businesses” at risk.
In a letter to the Chancellor, Mr Lord said: “I myself have been a Labour Party member for four years. I am now reconsidering this position.
“I attended your manifesto launch, I supported you in your bid to become the Government and I believed you had an understanding of the problems on the ground. Not any more.”
The businessman added: “The policies outlined in the Autumn Budget and set to be introduced in April will cripple businesses across the sector, and the consequences of these plans are already becoming visible.”
Sacha Lord, the former nightlife adviser to Andy Burnham (Image: Getty)
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Mr Lord warned in his letter on Tuesday that as many as 9,000 pubs could face closure this year following the Budget. He said this is a result of the National Insurance (NI) increase – one the policies affecting many businesses in the hospitality industry.
The hike of minimum wage by 6.7% will also hit many businesses from April 2025, the same time that firms will be burdened with the new NI figures.
The Labour donor added: “These businesses are not just numbers, they prop up our high streets, our communities and our culture that we are famed for the world over.
“If nothing changes, thousands more businesses will collapse, and Labour will be responsible.”
He warned the Chancellor that she “must do better” and make drastic changes quickly as “time is running out”.
Rachel Reeves’ new tax hikes will come take effect in April (Image: Getty)
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The former adviser resigned from his position with Andy Burnham last week following an investigation resulting in his company being ordered to return a £400,000 grant to the Arts Council.
In a statement on Wednesday, Mr Lord said: “The emotional toll and experience over recent months has given me the opportunity to reflect and gradually step back from my role in Greater Manchester.”
Mr Burnham praised his ex-adviser for being a “brilliant and vocal champion” of Manchester’s nightlife.
He said: “Sacha has accepted there were inaccuracies in a grant application, and I believe him when he says there was no intention to mislead and that he made no personal gain from the grant.”