How Ed turned against business leaders

EARLY in his leadership, Ed Miliband alienated business chiefs with class war rhetoric and quasi-Marxist policies his opponents said would drag Britain back to the 1970s. Here, JAMES SLACK examines how Red Ed drove a wedge between Labour and the wealth creators.

THE ATTACK ON ‘PREDATORY’ BIG BUSINESS

In September 2011, Miliband marks his first year as Labour leader by threatening a more punitive system of tax and regulation for businesses that he considers to be ‘predators’ who are ‘just interested in the fast buck’. ÷The Institute of Directors says: ‘We would like to know how he plans to identify and reward ‘good’ companies over ‘bad’ ones. He should have more faith in customers and investors to decide’.

THE ENERGY PRICE FREEZE THREAT

In his 2013 conference speech he pledges an incoming Labour government would freeze gas and electricity bills for 20 months. Power firms say it will deter investment in much needed infrastructure. Energy UK says the policy risks making ‘energy shortages a reality, pushing up the prices for everyone’.

THE SEIZURE OF PRIVATE LAND

Also that month Miliband announces councils should be allowed to fine developers if they acquire land with planning permission but do not build on it immediately. Town halls would also be able to buy and grant planning permission on land held by developers. The IoD says the ‘use it or lose it’ declaration is a ‘Stalinist attack on property rights’. The Home Builders Federation says it ‘completely rejects’ the idea land is being hoarded.

REINSTATING THE 50P TAX RATE

In January 2014, Labour vows it will reverse George Osborne’s cut in the 50p rate of tax for anyone earning more than £150,000 – which, with disingenuous class war rhetoric, it dubs a ‘tax cut for millionaires’. In a letter, the heads of 24 of Britain’s most successful companies say this would put the economic recovery at risk.

CORPORATION TAX REVERSE

In September 2014 Labour pledges to reverse a 1p cut in corporation tax. The IoD hits back: ‘It’s a dangerous move for Labour to risk our business-friendly environment in this way.’

THE VICIOUS ROW WITH BOOTS

In February Miliband and his supporters turn on Boots chief executive Stefano Pessina when he dares to say he fears Labour’s business policies will be a catastrophe. Pessina is labelled a tax avoider from Monaco. Appalled business chiefs accuse the Labour leader of ‘playing the man not the ball’.