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

By CHRISTIAN CALGIE, SENIOR POLITICAL CORRESPONDENT-AT-LARGE Published: 00:13, 22 August 2026 | Updated: 00:17, 22 August 2026 Labour's most high-profile billionaire supporter has said that Kemi Badenoch is leading the 'only electable party'. John Caudwell, who founded Phones 4u and is worth over £1.5 billion, prominently switched his allegiance to Labour ahead of the last general election, having previously donated to the Tories under Boris Johnson. A passionate Brexiteer, Mr Caudwell said he would back Sir Keir Starmer because the Tories' record had left him in 'despair'. But just two years later, he said he is now considering returning his support to the Conservatives thanks to Kemi Badenoch. He said he had been left 'very disappointed' by Labour's successive Budget tax raids, saying: 'At the moment, the only electable party to me seems to be the Conservatives again'. Issuing an early verdict on Andy Burnham, he added 'I do not think the Labour Party is electable', branding his policies 'piffle' that will fail to attract investment into Britain. Mr Caudwell urged Ms Badenoch to pledge tax cuts to 'attract environmentally friendly technology businesses from around the world.' He previously gave £500,000 to Boris Johnson in 2019 to prevent 'the disaster that would have been Jeremy Corbyn in Downing Street'. John Caudwell, who founded Phones 4u and is worth over £1.5 billion, has said that Kemi Badenoch is leading the 'only electable party' Mr Caudwell issued an an early verdict on Andy Burnham, adding 'I do not think the Labour Party is electable' But he defected to Labour ahead of the last general election due to the 'failures' of three Tory Prime Ministers, and cited Labour's 'transformation' under Sir Keir's leadership. He called on voters to put a 'very strong Labour government' into power 'that can take extremely bold decisions'. His emphatic support for Labour lasted for just one year, however, before he emerged in July 2025 to warn he was 'increasingly nervous' about the direction of the government following the Winter Fuel Payments 'fiasco'. He has also accused the government and Rachel Reeves of driving entrepreneurs and wealthy investors out of Britain. Despite his suggestion he may return to supporting the Tories, he said it would be conditional on Ms Badenoch changing her position on the environment. The eco-minded billionaire said that she is 'not really there on the environment properly yet', after ditching the party's support for Net Zero. He added: 'But if she looks like getting into power, I will be doing my best to influence her to become more climate change-orientated, but not as a cost centre, but as a profit centre. Conservative Party leader Kemi Badenoch during a visit to Balgone Barns Farm on Friday  'I would like the Conservatives to really get their act together and put into practice a lot of the things that I have been preaching.' Mr Caudwell has previously said he could never support Nigel Farage and Reform UK because of their total opposition to 'Net Stupid Zero'. In June he joined more than 100 business leaders in writing a letter to the government warning that Labour's changes to National Insurance, capital gains and business relief amount to a 'death by a thousand cuts' for companies.