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Labour offers counterpunch to Daily Telegraph business letter Labour offers counterpunch to Daily Telegraph business letter
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Labour tried to counter a potentially damaging letter from 103 senior business executives calling on voters to embrace Tory economic policy by producing a counter message from what it described as a true cross section of British society. Labour has moved to counter a potentially damaging letter from 103 senior business executives calling on voters to embrace Conservative economic policy with a counter-missive on Wednesday from what it described as a true cross-section of British society.
The Labour letter was signed by a mixed group of actors, businessmen, writers, nurses and a host of low-paid workers in response to an array of leading UK businessmen, many of them Conservative donors, who had signed the pro-Tory letter that first appeared in the Daily Telegraph. The Labour letter, signed by actors, business leaders, writers, nurses and a host of low-paid workers, came in response to a pro-Tory letter that appeared in the Daily Telegraph signed by an array of leading UK businessmen, many of them Conservative donors.
The 100 signatories, who declared “We come from all walks of life, this is what Britain looks like,” included as many as 50 people working on zero-hours contracts. Labour’s 100 signatories, including about 50 people currently working on zero-hours contracts, declare: “We come from all walks of life – this is what Britain looks like.”
The Labour supporters argued the fundamental choice at the election is whether the country works only for those at the top or for all working people – including those trying to make ends meet working in British businesses across the country to create wealth and support their families. Related: The Tory 100: captains of industry, party donors (and a few tax avoiders)
The group of businessmen and other high-profile figures who signed Labour’s letter included advertising guru Trevor Beattie, feminist writer Susie Orbach and fashion designer Wayne Hemingway. They also included Dale Vince, who founded Ecotricity, Philip Hedley, director emeritus of the Theatre Royal Stratford East, and Peter Duncan, the actor. It also includes shelf stackers, farm hands and firemen. They argue that the fundamental choice at the election is whether the country works only for those at the top or for all working people, including those struggling to make ends meet.
Focusing on the issue of zero-hours employment, the letter said that proliferation of such contracts have become a symbol of the failure of the government’s economic plan “which has helped fuel the low wage, low skill economy that is letting down working people and letting down Britain”. The businesspeople and other high-profile figures who have signed Labour’s letter include Trevor Beattie, the advertising guru, Susie Orbach, the feminist writer, Wayne Hemingway, the fashion designer, Dale Vince, who founded green energy company Ecotricity, Philip Hedley, director emiritus of the Theatre Royal Stratford East, and Peter Duncan, the actor. It also includes shelf stackers, farm hands and firemen.
Although the letter risks underlining Labour’s lack of high level business support, the organisers insist it was not designed to match the Conservative letter, but instead to make the point that everyone, not just business, has a stake in the coming election. Focusing on the issue of zero-hours employment, the letter said that the proliferation of such contracts had become a symbol of the failure of the government’s economic plan, “which has helped fuel the low-wage, low-skill economy that is letting down working people and letting down Britain”.
Labour also dismissed the business letter as a Tory stunt, adding that business needed to be careful that it was not seen to be in a cosy alliance with the Conservative party. Although the letter risks underlining Labour’s lack of high-level business support, the organisers insist it was not designed to match the Conservative letter, but instead to make the point that everyone, not just business, has a stake in the coming election.
Shadow business secretary Chuka Umunna added that Labour would maintain a competitive tax regime while prioritising support for small firms by cutting business rates on 1.5 million small business premises. “This was a letter organised by the Conservative party in a Conservative-supporting newspaper,” he told the Guardian. “We’ve got almost five million businesses in our country. At best you could say the people who signed this represent 0.002% of them.” Labour also dismissed the Telegraph letter as a Tory stunt, adding that business needed to be careful that it was not seen to be in a cosy alliance with the Conservative party.
Labour sources also said 22 of the letter signatories were Tory donors who had given up to £7.5m to the party. Chuka Umunna, the shadow business secretary, said: “This was a letter organised by the Conservative party in a Conservative-supporting newspaper. We’ve got almost 5m businesses in our country. At best you could say the people who signed this represent 0.002% of them.” He said Labour would maintain a competitive tax regime while prioritising support for small firms by cutting business rates on 1.5m small business premises.
However Labour will be watching nervously to see if the letter has a political impact, and will be hoping, after years of corporate scandals and excessive pay rises, the support of business leaders no longer has the traction with the British public it once had. Labour sources said 22 of the Telegraph letter’s signatories were Tory donors who had given up to £7.5m to the party.
But the Conservatives continued to drip feed out senior businessmen who were supporting the party, such as Yo! Sushi founder Simon Woodroffe who said it would be madness to change economic direction with the job half done. Woodroffe had previously appeared in a 2004 Labour broadcast but on Wednesday he said: “They are halfway through a job and I know what it is like in business, when you’re halfway through the job you do not necessarily look the rosiest. To change now, halfway through a recovery from the worst recession we have had in my lifetime, seems to be madness.” However, Labour will be watching nervously to see if the letter has a political impact and will be hoping that business leaders no longer have the traction with the public they once had after years of corporate scandals and excessive pay rises.
Labour will be aware that in first three days of the short campaign, the Conservatives have managed to fill the airwaves with a series of warnings about the fragile relations between UK business and Labour. Polls show the Tories have managed to make the economy the number one issue again, something that will please Tory high command since they regard it as their strongest suit. But the Conservatives continued to drip-feed details of senior businessmen who were supporting the party, such as Yo! Sushi founder Simon Woodroffe, who appeared in a 2004 Labour broadcast.
Miliband will need a strong showing in Thursday evening’s seven-way leader TV debate on ITV to put his campaign back on the front foot. It will be the only debate in which he faces David Cameron directly. He said it would be madness to change economic direction with the job half done. “They are halfway through a job, and I know what it is like in business when you’re halfway through the job – you do not necessarily look the rosiest,” he said. “To change now, halfway through a recovery from the worst recession we have had in my lifetime, seems to be a madness”
The Labour leader had deliberately sharpened the dividing line on the economy with a call in the morning to end the use of zero-hours contracts, saying he had decided to reduce the proposed length of time someone can be on such a contract before an employer is required to provide a permanent one. Labour will be aware that the Conservatives have managed to fill the airwaves during the first three days of the short campaign with a series of warnings about the fragile relationship between UK business and Labour. Polls shows the Tories have managed to make the economy the number one issue again, something that will please Tory high command, since they regard it as their strongest suit.
Miliband had originally proposed a one year qualification period, but said he would reduce this to three months, a move that was not welcomed by employers organisations. The change would cover 90% of zero-hours contracts. Labour leader Ed Miliband will need a strong showing in Thursday’s seven-way leaders’ debate on ITV to put his campaign back on the front foot. It will be the only debate in which he faces prime minister David Cameron directly.
Meanwhile, Osborne said the letter sent to the Daily Telegraph showed British business had spoken and had revealed how it believed Labour could not be trusted to run the economy. Miliband deliberately sharpened the dividing line on the economy with a call on Wednesday morning to end the use of zero-hours contracts, saying he had decided to reduce the proposed length of time that an employee could be on such terms before an employer was required to provide a full-time contract.
He said: “We have just 36 days left to save Britain’s economic recovery. A British general election has never seen a business letter like this – 103 business leaders employing over half a million people. The chairmen and chief executives of businesses that represent a roll call of British economic success, innovation and job creation. We have the leaders of some of our biggest companies like BP, Dixons-Carphone, and the Prudential.” Miliband had originally proposed a one-year qualification period, but said he would reduce this to three months, a move that would cover 90% of zero-hours contracts and was not welcomed by employers’ organisations.
Osborne also argued Labour may be planning to raise taxes for hundreds of thousands of middle-class professionals after the next election by lowering the £41,865 threshold for the 40p rate. But while on a visit to a Britvic factory in Leeds, Osborne conceded it “would be very difficult” for him to live on a zero-hours contract, before adding: “There are some zero-hour contracts that people want.” Meanwhile, the chancellor, George Osborne, said the letter sent to the Daily Telegraph showed that British business believed Labour could not be trusted to run the economy.
The shadow chancellor Ed Balls repeatedly refused to rule out changing the point at which the higher rate of tax kicks in, saying he had to be “honest” with the public that there was still a £90bn deficit to pay off. He said: “We have just 36 days left to save Britain’s economic recovery. A British general election has never seen a business letter like this – 103 business leaders employing over half a million people, the chairmen and chief executives of businesses that represent a roll-call of British economic success, innovation and job creation.
“We have the leaders of some of our biggest companies like BP, Dixons-Carphone, and the Prudential.”
He claimed that Labour may be planning to raise taxes for hundreds of thousands of middle-class professionals after the next election by lowering the £41,865 threshold for the 40p rate. But on a visit to a Britvic factory in Leeds, Osborne conceded it “would be very difficult” for him to live on a zero-hours contract, before adding: “There are some zero-hour contracts that people want.”
The shadow chancellor, Ed Balls, refused to rule out changing the point at which the higher rate kicked in, saying he had to be “honest” with the public that there was still a £90bn deficit to pay off.