London: Business leaders were critical of Labour Party leader Ed Miliband and they were keeping away from him. According to a report 15 business leaders who endorsed Tony Blair’s Labour party before the 2005 election have moved away from him.
The Labour leader was widely criticised this week for attacking the tax status of the head of high street chemist Boots for saying that Miliband would be a "catastrophe" for Britain. It came as Labour launched a new proposal to force all business owners to give workers the option of buying any business before it is sold. “Employee buyouts show how self-help and mutuality can build resilience into our economy, saving productive businesses and decent work,” Miliband would say.
“Many employers looking to sell their companies value these buyouts because they transfer ownership to people with a genuine interest in the firm’s long-term success.” The proposal was met with caution by the CBI, the business lobby group. “The principle of promoting employee ownership, as part of a range of diverse business models, is welcome,” said Katja Hall, the CBI Deputy Director-General.
“But we need to look at the detail to make sure that introducing a statutory employee buy-out right does not have unintended consequences, like delaying a sale or affecting the value of the company.”
Sixty-three business leaders signed an open letter supporting Labour when Tony Blair was leader in 2005 on the eve of that year’s general election.
However a survey of many of businessmen found that at least 15 – nearly a quarter of the total number of signatories - had cooled their support for Labour under Miliband’s leadership.
Johnny Hon, chairman of the Global Group of Companies, said: “I think that Labour needs to do more to spell out its economic policies in greater detail. “It needs to keep to the approach of active engagement and dialogue with the business community and not just retreat to a ‘core vote’ strategy.”
Danny Couper, who ran Couper Seafoods in Scotland, said: “I am quite content at this moment in time to sit in Scotland and see what happens. Many of the policies of the Labour party that I supported have now been taken up by the Scottish National Party.”
Lord Paul of Marylebone, a leading businessman, said that he left the Labour party in 2010 and now thought there was no “difference” between Labour and the Tories. He said: “I am not a member of the Labour party any more… If they form a Government they will be as good for business as anyone else. I don’t see much difference.”
Michael Ziff, another signatory, said only that “at the moment I am a supporter” of Labour but distanced himself from signing another letter, saying: “I want to see the paperwork.” Asked if he supported Labour’s economic policies, he said: “I have some concerns.”
Chris van der Kuyl, a Scottish entrepreneur, said: “I decided several years ago to stay quiet on party political matters.”
George Kessler, another businessman, added: “Some of Ed Miliband's policies are good and some would be disastrous, but the same is true of all the political parties.”
David Richards, the founder of motorsport company Prodrive, declined to speak up for Miliband, while Ian Smith, from Four Seasons Health Care, said it would be “imprudent to make political statements”.
Founder Simon Woodroffe also expressed concern about Labour’s plans for Government. Separately, Lord Levy, formerly Tony Blair's chief fundraiser who helped New Labour form close ties with business, said he was "saddened" by the attacks on Miliband.
Lord Levy insisted that he had not given up on Labour working with business under Miliband and attempted to play down the damage caused by the attacks.
