Tories are the only electable party, claims billionaire donor who defected to Labour in 2024 – as he brands Burnham’s policies ‘piffle’

John Caudwell, the Phones 4u founder and billionaire businessman who switched his political backing from the Conservatives to Labour ahead of the 2024 general election, has said the Tories are now "the only electable party" under Kemi Badenoch. His comments mark a further cooling of his support for Labour, which he has grown increasingly critical of over its tax policies since Rachel Reeves's Budgets, and come alongside a sharp dismissal of Andy Burnham as a potential Labour leader, whose policies he branded "piffle" that would fail to attract investment to Britain.

Caudwell, worth over £1.5 billion, previously donated £500,000 to Boris Johnson's Tories in 2019 before defecting to Labour, citing the party's "transformation" under Sir Keir Starmer. However, his enthusiasm soured within a year, and he has since criticised the government over the Winter Fuel Payment row and accused it of driving entrepreneurs and investors out of the country. He said any return of his support to the Conservatives would hinge on Badenoch strengthening her stance on the environment, having previously scrapped the party's Net Zero commitment, and urged her to pledge tax cuts to attract green technology investment. He also reaffirmed he could never back Nigel Farage's Reform UK due to its opposition to Net Zero policies.