Backlash at bosses who rake in £94m from EU

THE bosses of some of Britain’s biggest companies faced a backlash last night after they signed a letter supporting membership of the European Union.

Some 200 business leaders, ranging from the chief executives and chairmen of FTSE 100 firms to entrepreneurs such as Martha Lane Fox, put their name to the letter backing the Prime Minister.

However, while 36 blue chip companies in the FTSE 100 did sign the letter, the vast majority did not, with household names such as Tesco, Sainsbury’s and Next, as well as major banks Barclays and Lloyds, refusing to take part.

Critics described the pro-EU letter as another example of ‘project fear’ orchestrated by Downing Street – and pointed out many of the firms previously advocated Britain join the single currency.

According to the European Commission’s own figures, it appears many large companies have an incentive to stay because they receive tens of millions of pounds in handouts from the EU. And it also emerged: Fifteen of the 36 FTSE firms whose bosses signed the letter received more than €120million – around £94million – in grants from the European Commission between 2007 and 2014;

In addition, 24 of the companies spent around €21million (£16million) lobbying the Commission and employing consultant lobbyists;

A quarter of them actively campaigned in favour of Britain joining the euro – widely seen as a disaster;

The FTSE bosses were paid a total of more than £181million in one year, with one chief executive, Sir Martin Sorrell of WPP, earning £43million in 2014.

The letter was organised by the Britain Stronger In Europe group in partnership with No 10 and City PR man Roland Rudd, chairman of Finsbury Media, whose MP sister Amber is energy secretary and has signed up to pro-EU campaign group Remain. The signatories included chairmen or chief executives of big employers such as Asda, BT, Marks & Spencer and Vodafone – as well as Heathrow and Gatwick airports.

A total of 198 business leaders signed the letter. Many have close connections to David Cameron, including Lastminute.com founder Martha Lane Fox and Karren Brady, vice- chairman of West Ham FC – both of whom have been given peerages by the Prime Minister.

Analysis by the Vote Leave campaign group reveals that most of the signatories to the letter have either benefited from EU grants or have spent substantial amounts lobbying the EU.

Vote Leave said that large multinationals like the EU because its law is supreme over a large number of member states, meaning lobbying is easier and efficient.

The campaign group said that eight of the firms which signed the letter were also high-profile advocates of scrapping the pound and joining the single currency.

These were AstraZeneca, BAE Systems, BP, Diageo, Pearson, Unilever, Vodafone and WPP.

Leave campaigners point out that two-thirds of FTSE 100 firms, did not back the letter. Rob Oxley, spokesman for Vote Leave, said: ‘Many of those peddling project fear today wanted us to join the euro and opposed giving the public a referendum. They were wrong then and they are wrong now.’

The letter from the bosses of some of the UK’s best-known companies hailed the result of Mr Cameron’s renegotiation with Brussels, saying it will cut red tape and deepen the single market.

It had been speculated last week that half of FTSE 100 firms would sign the letter, but in the end fewer than a third did. Asked why, Mr Cameron yesterday said that companies were often reluctant to ‘make any form of political statement’.

Mr Rudd, treasurer of Britain Stronger In Europe, said: ‘This is the single biggest number of business leaders who have been willing to support staying in a reformed EU.’

Marks & Spencer distanced itself from its outgoing chief executive Marc Bolland, who signed the letter. It said the Dutchman – who is due to stand down in April – was acting in a ‘personal capacity’.

QUITTING the EU could lead to the break-up of the United Kingdom, Tony Blair claimed last night.

The former Labour prime minister used his first intervention in the referendum debate to stoke warnings by the SNP that the so-called Brexit would lead to a fresh vote on Scottish independence. Scottish First Minister Nicola Sturgeon has already warned that another referendum would be inevitable if Scotland is forced out of the EU ‘against its will’.

Mr Blair said a Brexit would threaten ‘the future of the UK itself ’ as it would ‘ completely change the dynamic around Scottish independence’.

He told the BBC he ‘desperately’ wanted Britain to remain in the EU, and that he believes voters are too ‘sensible’ to contemplate leaving.

Mr Blair backed David Cameron’s controversial EU deal, saying he had achieved a ‘significant amount’ in his negotiations with Brussels.

And he also indicated he was willing to campaign with Mr Cameron to keep Britain in the EU. ‘It’s not a question of stumping for the Prime Minister,’ he said. ‘It is a question of arguing the case for a position that I believe. I think in the end the British people, because they are sensible, will not take this risk.’

Mr Blair, who is said to still harbour ambitions of one day becoming EU president, tried to take the UK into the euro, saying it was Britain’s ‘destiny’. The former prime minister also presided over the controversial open borders policy that allowed hundreds of thousands of eastern European migrants to travel to Britain a decade ago.

‘Many wanted us to join the euro’