Small business owners condemn Ed Miliband with new letter » SMEInsider

Small business owners condemn Ed Miliband with new letter

One hundred small business owners have written to a national newspaper slamming Ed Miliband and the Labour party. They claim that Ed Miliband will be bad for business if Labour win the general election.

The letter, published by The Sun newspaper, comes less than two weeks after The Telegraph printed a similar document signed by over 100 large co-operations stating that Labour threatens Britain’s recovery. The Labour party dismissed this letter, claiming that it was a Conservative PR stunt.

The 100 business leaders who wrote the letter have an impressive workforce behind them. The SME bosses have created nearly 1000 new jobs between them. What concerns these small business owners the most is how Labour would alter corporation tax if they came into power.

‘‘Mr Miliband has already said he wants to increase corporation tax by 1 per cent to 21 per cent. This will hit companies’ profits and could lead to as many as 100,000 job cuts over five years,’’ stated the business owners in the letter.

According to the Department for Business, Innovation and Skills, 5.2 million SMEs accounted for 48 per cent of all private sector jobs. Their combined annual turnover was £1.2trillion last year.

Today’s news does raise some important questions. If there are over 5.2 million SMEs in Britain, how is it that no more than 100 businesses signed the letter?  Does this letter accurately reflect who small businesses are supporting in the general election?

According to the latest YouGov opinion polls, Labour is currently on top, leading the conservative party by 3. Another YouGov poll shows that only 3 in 10 people think another Tory-led government will help those who work for small businesses, which is a stark contrast to what was said in the letter.

What do you make of today’s developments? Which party do you support and why? We would love to hear your thoughts.

  • Not a Labour supporter!

    Whilst it’s fair comment that relatively few companies signed the letter, I would be interested to know if Miliband intends this 21% to cover all businesses, or only those with a turnover in excess of x. If x is very high, it might work for him, though I’m of the view that any increased company taxation at this stage would be a bad idea and jeopardise jobs.

    • Jim Shields

      Duh. The POINT was that it was 100 signatories, mirroring the Telegraph list. That was the point. Keep up people… ;-). While I am on – it’s late payment terms that kill small businesses…cash is king, remember…