Billionaire Phones4U founder John Caudwell savages Labour's tax plans
Billionaire Phones4U founder John Caudwell warns that ‘every wealthy person in the UK’ would LEAVE if Labour wins general election as he savages John McDonnell’s ‘frightening’ tax hikes
- Billionaire John Caudwell had a face-to-face meeting with John McDonnell
- Mr Caudwell said he would not have started business under current Labour Party
- He said the party’s tax plans would prompt many wealthy people to leave UK
- He claimed Labour’s ‘divisive message’ was ‘destroying confidence’ in business
- But Mr McDonnell defended plans to hike up taxes on the richest five per cent
Billionaire Phones4U founder John Caudwell has savaged Labour’s plans to soak the rich as he warned John McDonnell the party’s tax measures could spark an exodus of wealthy people from the UK.
Labour has vowed to hike up taxes on the top five per cent of earners and to reverse cuts to corporation tax if it wins power at the general election on Thursday.
But Mr Caudwell said ‘nearly every wealthy person I know is thinking of leaving the UK including me if Labour get in’ as he challenged Mr McDonnell during a face-to-face meeting.
Mr Caudwell, a well-known philanthropist, slammed Labour’s approach to business and said it ‘frightens the living daylights out of me’ after he was invited for tea by Mr McDonnell.
He also revealed he would not have started his business if the current version of the Labour Party was in charge at the time.
Mr McDonnell told Mr Caudwell he did not believe the latter claim as the shadow chancellor insisted Labour’s plans would create a fairer society.
Labour is planning to pay for much of its eye-wateringly expensive manifesto through tax rises on the rich which means that if a significant number of wealthy people were to leave the UK the party’s plans would likely be left in tatters.
Businessman John Caudwell told John McDonnell that he was afraid of what a Labour government would do to the UK’s business community
Mr Caudwell, who founded Phones4U, told the shadow chancellor ‘nearly every wealthy person I know is thinking of leaving the UK including me if Labour get in’
The shadow chancellor claimed during the sit down with Mr Caudwell that the ‘existing system is collapsing around our ears’ – something the businessman dismissed.
Mr Caudwell said: ‘I’ve paid over £300 million in total if you take capital gains tax as well as income tax.
‘I’m happy to do that because it is a contribution to society, the society that helped me be successful and a society that desperately needs my tax dollars.
‘In addition I spend probably at least 60 or 70 per cent of my waking hours on charitable purposes.’
Asked by the BBC interviewer moderating the exchange why he was so concerned about Labour’s tax plans, Mr Caudwell said: ‘When I hear words like, or phrases like, “nobody deserves to be a billionaire” and phrases like, “we’re going to tax high technology companies”, it frightens the living daylights out of me and out of society.’
Mr McDonnell tried to assuage Mr Caudwell’s fears and said: ‘I applaud what you do. I have actually said I do pay tribute to those people, the entrepreneurs who create the wealth, who pay their taxes and act responsibly.
‘I do that every time. But is it about having a fair taxation system as well.’
Mr Caudwell interrupted and said changes to the tax system had to be made ‘pragmatically’ to which Mr McDonnell replied: ‘That is exactly what we are doing though John.’
The shadow chancellor continued: ‘If you look at our proposals in this election, we are talking about the top five per cent paying a bit more in terms of income tax rate.
‘Again, not significantly more. We are looking at, yeah, reversing some of the corporation tax cuts, not all.’
But McDonnell dismissed Mr Caudwell’s concerns and said he did not believe the businessman’s claim that he would not start his business under the current version of the Labour Party
Asked if he would have started his business under a government led by Jeremy Corbyn, Mr Caudwell said: ‘The Labour Party as it stands today, if they were in power, no, I would not.’
Mr McDonnell said: ‘I don’t believe that.’
Mr Caudwell continued: ‘No, it’s true. You can’t challenge me on that. Why would I stay in a political environment that’s unfriendly and not encouraging entrepreneurship?’
The shadow chancellor insisted Labour was pro-business but Mr Caudwell said: ‘No, you’re not because what you’re doing is you’re creating a divisive message.
‘What you are doing as a Labour Party is destroying confidence and if you destroy confidence, nearly every wealthy person I know is thinking of leaving the UK including me if Labour get in.’
Mr McDonnell told the businessman: ‘If people have anxieties come and see us.’
Mr Caudwell has been a vocal critic of Mr Corbyn’s approach to business during his time as Labour leader. The businessman is also a supporter of Brexit.
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