FEO Sounds a ‘Canary in the Cage’ Warning Over Government Policies Threatening Jobs

Representing over 200 local business leaders employing 27,000 people in Hull and East Yorkshire, FEO has urged MPs and government leaders to reconsider policies that threaten the sustainability of local businesses and jobs.

In a recent letter to Members of Parliament covering Hull and East Yorkshire, FEO highlights how rising costs, overregulation, and fiscal pressures are forcing employers into difficult decisions which could destabilise the local economy. Like a “canary in the cage,” this letter serves as a warning signal for urgent government support instead of further burdens.

“Supporting Working People”

The letter reminds MPs that behind the rhetoric of “supporting working people” are the entrepreneurs and employers who create the jobs that sustain communities. However, recent fiscal measures have dampened business confidence and increased operational pressures, making it harder for businesses to maintain jobs and ensure long-term viability.

David Kilburn

David Kilburn, co-founder of FEO and Executive Chairman of MKM Building Supplies - recently surpassing £1.1 billion in turnover and employing thousands nationwide - said: "The government’s current approach traps the very engine driving our economy. Rather than stifling entrepreneurs with rising costs and regulation, they should enable us to create vital jobs and restore confidence. Employers need support, not shackles.

“As a call to action, FEO urges MPs and government leaders to urgently reassess their approach, prioritise productivity, and support entrepreneurs and employers - the true drivers of economic growth. Only through bold policy decisions, lower taxation, and a positive growth environment can Britain regain its competitive edge and restore economic confidence.”

Peter Aarosin

Peter Aarosin, Chair of FEO, "Supporting enterprise is not a luxury; it is the foundation of an effective economic strategy. The government’s current stance risks silencing the canary. To rebuild Britain’s future, we must empower those who build and sustain it.

“FEO wants MPs to listen to the voice of enterprise and recognise that government policies must support, not corner, employers facing hard choices about jobs.

“Sustainable prosperity is built by those who create businesses, shoulder risk, and drive growth.

Economic SOS

“We are sending out an economic SOS on behalf of the private sector in Hull & East Yorkshire. Small and medium-sized enterprises (SMEs) make up over 99% of UK businesses and employ approximately 16.7 million people, accounting for three in every five private sector jobs. These businesses are the backbone of the economy, yet our members locally fear that current conditions pose a significant challenge to sustaining jobs and investment.

“Where there was once pride in investing in assets and building for the future, many businesses now feel penalised for doing so. Leasing and renting are becoming the only viable options to help the next generation avoid fire sales or even liquidation."

Copy of the Letter to MPs

This letter was sent to Hull and East Yorkshire Members of Parliament: 

Hull East: Karl Turner (Labour)

Hull North and Cottingham: Dame Diana Johnson (Labour)

Hull West and Hessle: Emma Hardy (Labour)

Beverley and Holderness: Graham Stuart (Conservative)

Howdenshire and Goole - David Davis (Conservative)

Bridlington and the Wolds - Charlie Dewhirst (Conservative)
Businesses lost in Hull

In the last 3 years, 310 businesses have closed in Hull, these are micro businesses.