UK faces four years of economic pain because of Labour’s budget, BrewDog co-founder says | Money News

Britain faces four years of economic pain because the government has made life difficult for businesses following the budget, the co-founder of BrewDog has told Sky News.

James Watt has also suggested the UK is work-shy and only hard graft will lead to prosperity, which is lacking in the country.

It comes on the day Work and Pensions Secretary Liz Kendall announces a new review named “Keep Britain Working” in an effort to support people with long-term illnesses or disabilities back into work, while trying to lower the ballooning welfare bill.

The review will be led by former John Lewis chairman Sir Charlie Mayfield at a time when around 3.7 million people of working age receive health-related benefits, which is 1.2 million more than in February 2020.

Britain is now spending more on incapacity and disability benefits (almost £65bn) than defence – and that figure is set to rise.

Mr Watt, who stepped down as BrewDog chief executive last May, made headlines earlier this month after posting a video with fiancee Georgia Toffolo in which they said they do not believe in a “work-life balance”.

He is launching an entrepreneurial competition show named House Of Unicorns in a bid to find a start-up company with a £2m prize.

He said: “I think the Labour government certainly haven’t helped businesses and haven’t helped founders.

“I think the budget is really, really bad for the UK and caused a lot of damage. And I think the UK attitude towards success and attitude towards entrepreneurs doesn’t help us.

“When you contrast that with the American attitude towards success that is one of the reasons you see so many more founders and entrepreneurs in America versus the UK at the moment.”

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‘UK economy is heading towards recession’

Mr Watt was scathing about the country’s economic prospects, saying: “The UK economy is heading towards a recession, we have debt levels which are way too high, we are trying to tax our way to economic prosperity, which I don’t think will work at all.

“And all the chancellor has done is make it very, very difficult for businesses to employ people, which I think in turn is going to lead to four years of economic pain.”

Asked whether he thought British workers were work shy, Mr Watt told Sky News: “I think you just have to look at the data, we are 18% less productive than America, we are 13% less productive than the French. And we often joke about the French being lazy.”

Work and pensions secretary defends budget

But the work and pensions secretary defended the budget, insisting it was not a tax on jobs.

On a visit to Coca-Cola’s headquarters, Ms Kendall told Sky News: “We have seen a tick up in youth unemployment and I’m really concerned about that.

“We’ve got now one million young people not in education, employment or training. That is terrible for their future life chances, because we know if you’re out of work and you don’t have skills when you’re young, it can have lifelong consequences.

“That’s why we will have a youth guarantee. So every young person is earning or learning. No ifs, no buts.”

‘We won’t means test’ pension triple lock – Liz Kendall

Ms Kendall also doubled down on her commitment to the state pension triple lock despite the necessity to cut the welfare bill.

“We won’t means test it,” she said. “We committed to the triple lock because we believe current pensioners and future pensioners deserve to be able to plan with security.”

Mr Watt however is the latest in a line of business leaders who have warned the budget will lead to companies laying people off this year.

It comes as new figures released this week showed an increase in unemployment and a fall in vacancies at a time in which the population continues to grow.