The IoD welcomed Ed Miliband’s focus on the importance of wealth creators as he launched the Labour Party’s economic strategy. Christian May, Head of Campaigns at the Institute of Directors, who attended Ed Miliband’s speech at Jaguar Land Rover in Wolverhampton, said:
“The Labour leadership seems to have found its voice in the debate about the importance of successful businesses. This is an important change in tone from Ed Miliband and one which will be welcomed by the business community. After all, business and enterprise must be supported and celebrated, not just tolerated. In particular, Miliband’s focus on creating long-term value by boosting productivity and addressing the skills gap will win the support of employers.
“However, it is hard to square this new-found enthusiasm for wealth creation with Labour’s commitment to reintroducing the inefficient 50p rate of tax. New figures show that revenue raised from these taxpayers jumped by £8bn after it was cut, proving that reinstating the punitive 50p rate would do more harm than good.
“Labour’s pledge to have the lowest corporation tax rate in the G7 is also welcome, but it should be stressed that the party has not yet ruled out an increase in the rate. For many small and medium-sized businesses it is the absolute burden which matters more than international comparisons, and we would like to see Miliband go further and rule out a corporation tax hike under a Labour government.”