Labour Loses Only FTSE100 Business Backer in Tax Backlash
JD Sports Chairman Andrew Higginson was on the airwaves this morning making clear that Reeves’ budget tax rises would crush businesses like his:
“You’ve seen a bill for retail across National Insurance, minimum wage, the changes to rates which means rates are going up despite the fact we were promised that rates would be coming down for retail, you’re seeing a £5 billion a year hit and there’s only two ways to deal with that.
One is to cut back on investment, cut back on recruitment, cut back on headcount, cut back on jobs.
Secondly, to put up prices and the one thing that will guarantee is that we will see inflation in retail prices coming from the things that were announced.
The cumulative effect of all these changes is too much for industry to bear in the sense of them being able to get on and invest and grow.”
What hacks have missed is that Higginson was the only FTSE100 boss to sign Labour’s much-touted “Business leaders back Labour” letter from back in May. Guido didn’t hear Higginson repeat his endorsement this morning…
The letter said business leaders trust Labour “will partner fiscal discipline with a long-term growth strategy, working in partnership with the private sector to drive innovation and investment.” Shadow Business and Trade Secretary Andrew Griffith tells Guido he offers his sympathies: “Labour talked a good game during the election but at the first opportunity did what they always planned and hiked tax and wage costs. We shouldn’t blame business leaders for being fooled, they took Labour by their word. But every day it becomes clearer they are losing any support from business they once had.” Not to mention all the working people…
