Rachel Reeves is waging 'war on aspiration' and killing off growth with taxes, business leaders warn
Business bosses have turned on Chancellor Rachel Reeves for waging 'war on aspiration' and killing economic growth with taxes.
Billionaire Sir James Dyson, in a blistering attack on Labour, yesterday accused the Government of being 'out to destroy' and punish wealth and job creators.
He added: 'There is a war on aspiration and it's time we fought back.'
John Roberts, boss of white goods retailer AO World, also criticised the Chancellor's policies, including her controversial National Insurance hike, saying they are 'not a growth engine'.
The attacks come as Ms Reeves reportedly weighs up a U-turn on her axing of the non-dom tax status in a bid to halt an exodus of Britain's wealthiest residents. And they follow a report from the Confederation of British Industry (CBI) that the economy will 'muddle through' this year and next.
The CBI downgraded its forecast for UK economic growth this year from 1.6 per cent to 1.2 per cent, and from 1.5 per cent to 1 per cent for next year.
In the wake of those figures, Sir James condemned a raft of Labour policies, including changes to inheritance tax, non-doms and VAT on school fees.
He hit out at Labour's employment rights Bill that includes proposals to expand the grounds for unfair dismissal and increase sick pay costs.
It would also ban zero-hour contracts, strengthen flexible working rights and scrap some trade union restrictions.
Sir James wrote in The Sun: 'Labour has ramped up employer National Insurance, triggering job losses, stopping investment and hitting workers hardest.
'New employment laws granting employees ever more rights will mean tribunal claims will rocket. Aspiring employers, coping with punitive and costly claims, will stop hiring. Even more jobs will disappear. Ambition and growth are being killed.
'There are plenty of ambitious young entrepreneurs in this country. But if the desire to be successful is punished, with tax and red tape, the talented will take their ideas and leave.'
Mr Roberts told the BBC: 'If you put taxes on businesses and you put taxes on employment, that isn't a growth engine.'
It was reported last month the UK has lost the largest number of billionaires on record. Reform UK leader Nigel Farage joined the assault yesterday by mocking Sir Keir Starmer as Labour slipped to third place in a poll.
He referenced a recent TV interview in which Sir Keir was asked 'what was his biggest mistake' and replied: 'We haven't always told our story as well as we should.' But Mr Farage said: 'Do you know what his biggest mistake was? Going into politics.
'Because if you go into politics you do it because you believe in something. This bloke doesn't believe in a single thing other than the niceness of human rights law, international law and the north London set.'
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