Business figures hit out at Labour's 50% tax rate plan
Senior British business figures have launched a strong and united attack on Labour’s pledge to raise the top rate of tax to 50%.
In the strongest criticism so far, the heads of 24 of Britain’s most successful companies warned in a letter to The Telegraph that Ed Miliband’s policy would threaten the recovery and cost jobs.
Ed Balls, the shadow chancellor, has been severely criticised by rival politicians, industry figures and some members of his own party since announcing the policy. Balls insisted that his party was “pro-business” but claimed it was needed to close the budget deficit, which is forecast to be £78 billion at the next election reports the UK Telegraph.
The signatories of today’s letter include Sir Stuart Rose, the chairman of Ocado, Sir Ian Cheshire, the chief executive of the DIY giant Kingfisher, and Neil Clifford, the chief executive of the footwear retailer Kurt Geiger.
They warn that the 50% rate “will have the effect of discouraging business investment in the UK” and is a “backward step” that would quickly lead to job losses.
Charlie Mullins, the founder of Pimlico Plumbers, said it would trigger an exodus of investors like that seen in France after President François Hollande increased the top rate of tax to 75 per cent.
Another signatory is Richard Caring, the owner of Le Caprice and the Ivy restaurants who has an outstanding £2 million loan to the Labour Party.
He said he was “deflated to see this negative political attack on those trying to support the fragile recovery … This is a complete downer and discouragement for entrepreneurs”.
Sir Stuart, who led Marks & Spencer for six years, added: “This will put at risk all the good work that has been done to put the economy back on track.”
Sir Ian, whose company’s stores include B & Q and Screwfix, said: “Raising the rate is bad economics and sends an anti-business message.”
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