Billionaire James Dyson blasts ‘spiteful’ UK tax hikes

LONDON - The tax hikes on British businesses in Chancellor Rachel Reeves’ first budget will lead to the “death of entrepreneurship” and could “kill off” growth, according to Mr James Dyson, the billionaire founder of vacuum cleaner maker Dyson.

In an opinion piece for The Times newspaper, the tycoon said that the new Labour government’s fiscal plans are “spiteful” and will cause small businesses to suffer. Mr Dyson is the Britain’s wealthiest resident, with a fortune of US$21 billion (S$27.9 billion), according to the Bloomberg Billionaires Index. 

“Make no mistake, the very fabric of our economy is being ripped apart. No business can survive Reeves’ 20 per cent tax grab. It will be the death of entrepreneurship,” he said, referring to an inheritance tax clampdown on business owners at the Oct 30 budget.

“It detests the private sector and has chosen to kill off individual aspiration and economic growth,” he said. 

The remarks are the most high-profile attack from a British business leader since Ms Reeves’ budget, after companies were forced to shoulder the bulk of her £40 billion (S$68.5 billion) of tax rises. 

While Labour went on a charm offensive with businesses before its landslide election victory on July 4, companies were targeted by Ms Reeves in her budget.

She announced the biggest tax rise for more than 30 years to raise money to shore up public finances and improve public services, including an increase to companies’ national insurance contributions.

The UK Treasury did not immediately reply to an e-mail seeking comment sent outside normal business hours. 

Ms Reeves said in an interview with the BBC on Nov 3 that she is “not immune” to criticism over her tax plans but said “we’ve got to raise the money to put our public finances on a firm footing”.

Mr Dyson said that Ms Reeves “is killing off established family businesses, and any incentive to start new ones” after announcing plans to boost revenue from reducing the generosity of business property relief on inheritance tax for wealthy entrepreneurs.

“Reeves ignores the fact that the wealth of this nation is built not by government but by private enterprise and entrepreneurs,” Mr Dyson said. “It beggars belief that Labour proudly boasts of trying to attract foreign investment, while at the same time eviscerating homegrown businesses.”

Mr Dyson has been an outspoken voice on Britain’s government policy, and was one of a limited number of City of London figures to back Britain’s exit from the European Union. BLOOMBERG