The letter – also signed by the founder of Iceland Malcolm Walker and Ocado boss Sir Stuart Rose – claimed the Conservative-led government had been good for business, while a change of course, as advocated by Labour, would “threaten jobs and deter investment”. The current economic policy had “supported investment and job creation” the letter claimed.
Corporation tax
Published in The Telegraph today (April 1), the letter singled out the government’s flagship policy of lowering corporation tax to 20% for particular praise. The policy had been “very important in showing the UK is open for business” and a “key part of the economic plan”, the signatories claimed.
A direct consequence of the policy had been that Britain grew faster than any other major economy last year and contributed to the creation of more than 1.85M new jobs.
Abandoning the current economic policy would threaten jobs and deter investment, continued the letter, which appears in full below. “This would send a negative message about Britain and put the recovery at risk.”
‘Put the recovery at risk’
Other signatories with food and drink industry connections were: Paul Wilkinson, chairman of Thorntons, the National Skills Academy for Food and Drink and the judging panel of the Food Manufacture Excellence Awards, Paul Walsh, chairman of Compass Group, Andy Harrison, chief executive of Whitbread and Rooney Anand, ceo of Green King. The full list of 103 signatories appears in the box below.
The bosses' view
“David Cameron and George Osborne’s flagship policy of progressively lowering corporation tax to 20% has been very important in showing the UK is open for business. It has been a key part of their economic plan.”
But, Labour’s shadow business secretary Chuka Umunna dismissed the letter as unsurprising. “No one will be surprised that some business people are calling for low taxes for big businesses. That’s nothing new and under Labour Britain will have the most competitive corporation tax rate in the G7 [group of wealthy nations],” said Umunna.
“But whilst the recovery may have reached some firms it hasn’t reached many others which is why we will prioritise tax cuts for the smallest firms with an immediate cut in business rates for 1.5M small business premises.”
Labour has pledged to reverse the cut in corporation tax if it is successful in the general election on May 7. When Labour left power the rate of corporation tax was 28%.
The business leaders’ letter followed news yesterday (March 31) from the National Office of Statistics that the UK economy is growing faster than expected and household disposable income had returned to pre-2010 levels.
Meanwhile, the bosses' intervention followed a full page advert in The Financial Times on Monday (March 29) quoting six business leaders who opposed Conservatives plan to offer an in out referendum on Britain's EU membership if it wins the election. One of the leaders quoted was Kellogg boss Jonathan Myers, but the firm later stressed its political neutrality.
Letter of support
Dear Sirs,
“We run some of the leading businesses in the UK. We believe this Conservative-led government has been good for business and has pursued policies which have supported investment and job creation.
“David Cameron and George Osborne’s flagship policy of progressively lowering corporation tax to 20% has been very important in showing the UK is open for business. It has been a key part of their economic plan.
“The result is that Britain grew faster than any other major economy last year and businesses like ours have created over 1.85M new jobs.
“We believe a change in course will threaten jobs and deter investment. This would send a negative message about Britain and put the recovery at risk.”
The signatories were:
