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| Bosses hit back in tax plans row | |
| (about 1 hour later) | |
| A row over National Insurance rises has escalated after business leaders said claims they had been "deceived" into backing Tory plans were "patronising". | A row over National Insurance rises has escalated after business leaders said claims they had been "deceived" into backing Tory plans were "patronising". |
| Chancellor Alistair Darling accused the Tories of "peddling a deception" after 23 top bosses backed proposals to curb National Insurance increases. | Chancellor Alistair Darling accused the Tories of "peddling a deception" after 23 top bosses backed proposals to curb National Insurance increases. |
| Mr Darling said the bosses should take a "long hard look" at the Tory plans, rather than accepting "flimsy advice". | Mr Darling said the bosses should take a "long hard look" at the Tory plans, rather than accepting "flimsy advice". |
| But two of them hit back instantly, accusing Labour of a "tax on jobs". | But two of them hit back instantly, accusing Labour of a "tax on jobs". |
| Next boss Simon Wolfson, a longstanding Conservative supporter, said in a statement: "Of course we have not been deceived. | Next boss Simon Wolfson, a longstanding Conservative supporter, said in a statement: "Of course we have not been deceived. |
| "The principle is a very simple one. It is a question of, do we pay for government profligacy through increased taxes or do we urge them to save money in a way that businesses have?" | "The principle is a very simple one. It is a question of, do we pay for government profligacy through increased taxes or do we urge them to save money in a way that businesses have?" |
| 'Sweet shop' | 'Sweet shop' |
| Kingfisher chief executive Ian Cheshire said: "It's a little patronising to suggest that we've been deceived. | Kingfisher chief executive Ian Cheshire said: "It's a little patronising to suggest that we've been deceived. |
| To say somehow Britain's business leaders have been deceived is patronising, wrong, will backfire, and shows that their plans are in meltdown David CameronConservative leader Company bosses back Tories | To say somehow Britain's business leaders have been deceived is patronising, wrong, will backfire, and shows that their plans are in meltdown David CameronConservative leader Company bosses back Tories |
| "This isn't a political point, it's a business issue - whichever way you look at it, it's a tax on jobs." | "This isn't a political point, it's a business issue - whichever way you look at it, it's a tax on jobs." |
| Business Secretary Lord Mandelson said the Conservative plans were a "cynical deception" that could not be achieved without increasing VAT, as he said the Conservatives had done after winning elections in 1979 and 1992. | Business Secretary Lord Mandelson said the Conservative plans were a "cynical deception" that could not be achieved without increasing VAT, as he said the Conservatives had done after winning elections in 1979 and 1992. |
| He said shadow chancellor George Osborne was "like a kid in a sweet shop, who thinks he can just grab sweets from every jar without paying for them". | He said shadow chancellor George Osborne was "like a kid in a sweet shop, who thinks he can just grab sweets from every jar without paying for them". |
| "Of course there are some in business who are going to support what appears to be a pain-free tax cut. I mean, who wouldn't, if offered that?," said Lord Mandelson. | "Of course there are some in business who are going to support what appears to be a pain-free tax cut. I mean, who wouldn't, if offered that?," said Lord Mandelson. |
| "But the point is, this is not pain-free and Mr Cameron and Mr Osborne are peddling a deception." | "But the point is, this is not pain-free and Mr Cameron and Mr Osborne are peddling a deception." |
| 'Panic' | 'Panic' |
| Alistair Darling, appearing alongside the business secretary at an election campaign-style press conference, said company bosses supporting the Conservatives in a letter were backing pledges made on a "wing and a prayer". | Alistair Darling, appearing alongside the business secretary at an election campaign-style press conference, said company bosses supporting the Conservatives in a letter were backing pledges made on a "wing and a prayer". |
| HAVE YOUR SAYA rise in employers' NI is a tax on jobsTio Terry Send us your comments | HAVE YOUR SAYA rise in employers' NI is a tax on jobsTio Terry Send us your comments |
| He accused Mr Osborne of "double counting" and claimed the Conservatives had a £22bn "credibility gap" in their economic plans - although he conceded this had gone down from the £34bn gap previously claimed by Labour. | He accused Mr Osborne of "double counting" and claimed the Conservatives had a £22bn "credibility gap" in their economic plans - although he conceded this had gone down from the £34bn gap previously claimed by Labour. |
| He said the £6bn in efficiency savings the Conservatives planned to use to axe the National Insurance increase were "illusory, non-specific and unbankable". | He said the £6bn in efficiency savings the Conservatives planned to use to axe the National Insurance increase were "illusory, non-specific and unbankable". |
| Mr Darling said Mr Osborne was producing "panic" plans based on "the next day's headlines". | Mr Darling said Mr Osborne was producing "panic" plans based on "the next day's headlines". |
| And he urged the business leaders who signed the letter to "have a long look at what the Tories are up to and then they might just have some serious questions to ask". | And he urged the business leaders who signed the letter to "have a long look at what the Tories are up to and then they might just have some serious questions to ask". |
| He said no chancellor could rule out future increases in VAT - but said he had ruled such a move out last year when he was planning how to cut the budget deficit. | He said no chancellor could rule out future increases in VAT - but said he had ruled such a move out last year when he was planning how to cut the budget deficit. |
| 'Significant moment' | 'Significant moment' |
| If they win the election, the Conservatives plan to scrap the planned April 2011 National Insurance rise for anyone earning less than £45,400 a year, which they say would save people £150 a year on average and also reduce the tax burden on firms. | If they win the election, the Conservatives plan to scrap the planned April 2011 National Insurance rise for anyone earning less than £45,400 a year, which they say would save people £150 a year on average and also reduce the tax burden on firms. |
| Mr Cameron said the plan would not hamper efforts to cut Britain's record budget deficit - or mean a rise in VAT. | Mr Cameron said the plan would not hamper efforts to cut Britain's record budget deficit - or mean a rise in VAT. |
| Speaking on a campaign visit at a B&Q store, he said: "Our plans don't involve an increase in VAT. | Speaking on a campaign visit at a B&Q store, he said: "Our plans don't involve an increase in VAT. |
| "We say it's wasteful spending that's cut, rather than putting up taxes, as the government suggest." | "We say it's wasteful spending that's cut, rather than putting up taxes, as the government suggest." |
| He said the backing of a "pretty incredible" list of business leaders was a "very significant moment" in the election campaign that showed the Tories "have got it right and Labour have got it wrong". | He said the backing of a "pretty incredible" list of business leaders was a "very significant moment" in the election campaign that showed the Tories "have got it right and Labour have got it wrong". |
| "Labour, today, to say somehow Britain's business leaders have been deceived is patronising, wrong, will backfire, and shows that their plans are in meltdown," he added. | "Labour, today, to say somehow Britain's business leaders have been deceived is patronising, wrong, will backfire, and shows that their plans are in meltdown," he added. |
| Lord Digby Jones, the former head of the CBI who served as a trade minister under Gordon Brown, said it was "utter rubbish" to claim that company chiefs had been deceived as it was clear that the NI increase would hurt their businesses. | |
| While he believed Lord Mandelson was "wrong" on the issue, he said he regretted the fact that both sides were "politicising" the matter. | |
| "This is about peoples' jobs at stake as we come out of recession and should not be about who can claim support," he told the World at One. | |
| David Cameron: "There is a threat to the recovery from putting up National Insurance" | David Cameron: "There is a threat to the recovery from putting up National Insurance" |
| Among the high-profile businessmen to back Mr Cameron are Marks & Spencer chief executive Sir Stuart Rose, Sainsbury's boss Justin King and Easygroup's Sir Stelios Haji-Ioannou. | Among the high-profile businessmen to back Mr Cameron are Marks & Spencer chief executive Sir Stuart Rose, Sainsbury's boss Justin King and Easygroup's Sir Stelios Haji-Ioannou. |
| Writing to the Telegraph, the business leaders said Labour's proposed 1% NI increase was an "additional tax on jobs" and would come into effect "at exactly the wrong time in the economic cycle" and would "engager" economic recovery. | Writing to the Telegraph, the business leaders said Labour's proposed 1% NI increase was an "additional tax on jobs" and would come into effect "at exactly the wrong time in the economic cycle" and would "engager" economic recovery. |
| They said Labour's 1% NI increase was a "tax on jobs" and would "endanger" recovery. | They said Labour's 1% NI increase was a "tax on jobs" and would "endanger" recovery. |
| BBC political correspondent Ross Hawkins says the businessmen - which include some who are well known Tory supporters but also two who sit on the prime minister's business council - have an obvious incentive for opposing a tax rise that will cost their companies money. | BBC political correspondent Ross Hawkins says the businessmen - which include some who are well known Tory supporters but also two who sit on the prime minister's business council - have an obvious incentive for opposing a tax rise that will cost their companies money. |
| However, he added that their endorsement would be a boost for the Tories and shadow chancellor George Osborne as they seek to demonstrate the credibility of the party's economic plans. | However, he added that their endorsement would be a boost for the Tories and shadow chancellor George Osborne as they seek to demonstrate the credibility of the party's economic plans. |
| The full list of signatories of the letter: Sir Anthony Bamford (JCB); Bill Bolsover (Aggregates Industries); Dominic Burke (Jardine Lloyd Thompson); Ian Cheshire (Kingfisher); Neil Clifford (Kurt Geiger); Mick Davis (Xstrata); Aidan Harvey (Tullow Oil); Lord Harris (Carpetright); Justin King (Sainsbury's); Sir Chris Gent (GlaxoSmithKline); Ben Gordon (Mothercare); John Lovering (Mitchells and Butler); Graham Mackay (SAB Miller); Alistair McGeorge (Matalan); Nicolas Moreau (Axa UK); Stephen Murphy (Virgin Group); Alan Parker (Whitbread); Sir Stuart Rose (Marks and Spencer); Paul Walsh (Diageo); Joseph Wan (Harvey Nichols); Simon Wolfson (Next); Zameer Choudrey (Bestway Cash and Carry); Sir Stelios Haji-Ioannou (easyGroup) | The full list of signatories of the letter: Sir Anthony Bamford (JCB); Bill Bolsover (Aggregates Industries); Dominic Burke (Jardine Lloyd Thompson); Ian Cheshire (Kingfisher); Neil Clifford (Kurt Geiger); Mick Davis (Xstrata); Aidan Harvey (Tullow Oil); Lord Harris (Carpetright); Justin King (Sainsbury's); Sir Chris Gent (GlaxoSmithKline); Ben Gordon (Mothercare); John Lovering (Mitchells and Butler); Graham Mackay (SAB Miller); Alistair McGeorge (Matalan); Nicolas Moreau (Axa UK); Stephen Murphy (Virgin Group); Alan Parker (Whitbread); Sir Stuart Rose (Marks and Spencer); Paul Walsh (Diageo); Joseph Wan (Harvey Nichols); Simon Wolfson (Next); Zameer Choudrey (Bestway Cash and Carry); Sir Stelios Haji-Ioannou (easyGroup) |