UK’s Richest Man Says ‘Spiteful’ Tax Hikes Will Kill Off Growth

Posted by Admin November 3, 2024 Bussiness

(Bloomberg) — The tax hikes on UK businesses in Chancellor Rachel Reeves’ first budget will lead to the “death of entrepreneurship” and could “kill off” growth, according to James Dyson, the billionaire founder of vacuum cleaner maker Dyson Ltd.

In an opinion piece for The Times newspaper, the tycoon said that the new Labour government’s fiscal plans are “spiteful” and will cause small businesses to suffer. Dyson is the UK’s wealthiest resident with a fortune of $21 billion, according to the Bloomberg Billionaires Index.

“Make no mistake, the very fabric of our economy is being ripped apart. No business can survive Reeves’s 20% tax grab. It will be the death of entrepreneurship,” he said, referring to an inheritance tax clampdown on business owners at Wednesday’s budget.

“It detests the private sector and has chosen to kill off individual aspiration and economic growth,” he said.

The remarks are the most high profile attack from a British business leader since Reeves’ budget after firms were forced to shoulder the bulk of her £40 billion of tax rises.

While Labour went on a charm offensive with businesses before its landslide election victory on July 4, firms were targeted by Reeves at Wednesday’s budget. She announced the biggest tax rise for over 30 years to raise money to shore up public finances and improve public services, including an increase to firms’ national insurance contributions.

The Treasury didn’t immediately reply to an email seeking comment sent outside normal business hours.

Reeves said in an interview with the BBC on Sunday that she is “not immune” to criticism over her tax plans but said “we’ve got to raise the money to put our public finances on a firm footing.”

Dyson said that Reeves “is killing off established family businesses, and any incentive to start new ones” after announcing plans to boost revenue from reducing the generosity of business property relief on inheritance tax for wealthy entrepreneurs.

“Reeves ignores the fact that the wealth of this nation is built not by government but by private enterprise and entrepreneurs,” Dyson said. “It beggars belief that Labour proudly boasts of trying to attract foreign investment, while at the same time eviscerating homegrown businesses.”

Dyson has been an outspoken voice on UK government policy and was one of a limited number of City of London figures to back Britain’s exit from the European Union.