Labour-backing Iceland boss issues warning to Chancellor Rachel Reeves ahead of tax-hiking Budget
THE LABOUR-backing boss of Iceland has warned Rachel Reeves not to squeeze business like a lemon in her nightmare tax-hiking Budget.
Supermarket supremo Richard Walker points out Labour’s “doom-laden” warnings on the economy are in stark contrast to their pre-election promises to be pro-growth.
And he is calling on the Chancellor not to hammer businesses already under the cosh.
He switched his support from the Conservatives to Labour at the start of this year saying Sir Keir Starmer’s party was the “right choice” for his shoppers.
Writing in today’s Sun on Sunday, he said: “The Tories have already imposed the highest tax burden the UK has ever seen, and Government must recognise that business is already bearing heavy costs.
“It is not a lemon that can keep being squeezed without any adverse impact on employment or consumers.”
And the former Tory-donor said Deputy Prime Minister Angela Rayner’s plan to boost workers’ rights must be done in tandem with businesses.
He added: “This needs to be done by working with business rather than by imposing unrealistic restrictions and conditions on companies that are genuinely trying to do their best for their employees, Iceland included.”
It comes as new survey by the Confederation of British Industry reveals businesses are worried about the plan that will hand sweeping new powers to unions.
Only 26 per cent of businesses think they can absorb the cost of the radical overhaul without a negative impact on growth or jobs.
And 54 per cent disagree they can afford the higher costs they expect from the package without there being unintended consequences.
Matthew Percival, from the CBI said a lack of detail had created “damaging uncertainty”.
He added: “Businesses are concerned that achieving these goals in the wrong way risks significant unintended consequences for growth and for workers.”
Ministers have been laying the ground work for tax rises in Ms Reeves budget on October 30.
Senior Tory MP Harriett Baldwin said: “I fear that October’s budget will be a tough one for anyone over working age, anyone who owns a property, anyone who pays council tax, anyone who is saving for their old age and for anyone who drives.
“Rachel Reeves will be planning to end the 5p off fuel, bring back the fuel duty escalator and may even bring in a road usage tax of some sort.”