Financial Times

By Cathy Newman and Jean Eaglesham
Published: April 24 2005

Labour will on Monday claim the endorsement of a roll-call of industry leaders in an attempt to bolster its economic credentials, amid growing concern that it may raise business taxes after the election.

Among the signatories are Charles Allen, chief executive of ITV; Sir Ronald Cohen, executive chairman of the venture capital group Apax Partners; Lord Hollick, the outgoing chief executive of United Business Media; Sir Gerry Robinson, chairman of Allied Domecq, and Sir Alan Sugar, chairman of Amstrad.

The letter to the FT says: ?Economic stability and a competitive tax framework have created the environment for business to invest for the long-term, raising competitiveness and creating wealth and employment across the UK.?

But their carefully-choreographed intervention comes amid anxiety from some in the business community that industry faces higher taxes after the poll. The British Chambers of Commerce will today seek to raise the pressure by calling on both Gordon Brown and Conservative leader Michael Howard to rule out further rises, revealing that 90 per cent of 550 members it surveyed feared tax increases would damage their companies. Industry was taken aback by Mr Brown's decision to increase employers' National Insurance contributions after the 2001 election. However, Labour's business manifesto, to be published later this week, is not expected to make specific pledges on tax.

Some Labour businessmen had been pressing the chancellor for a more unequivocal message, but the manifesto is instead expected to repeat a vaguer commitment to a tax regime that ?supports? British companies.

The Conservatives will make their pitch for industry's vote today by bolstering the launch of their business manifesto with new pledges to curb the ?blame and claim? culture.

The Conservative proposals are designed to deter vexatious claims by increasing the financial stakes for employees, forcing claimants to pay a deposit and awarding all costs against the losing party in most cases.

The Tories would also introduce high court guidelines setting limits on payouts for stress claims and use ?sunset? clauses to scrap health and safety measures whose costs are deemed to outweigh the benefits.

Also on Monday, Labour will publish a new report on the economic regeneration of big cities. Praising the ?steady transformation? of Britain's cities, John Prescott, the deputy prime minister will say: ?The credit goes to the people and businesses and authorities that have helped bring it about. But it has also happened because of the economic stability the government has delivered.?

Cabinet ministers and business supporters will attend events today in eight of the country's cities highlighting Mr Prescott's claim. Meanwhile, Mr Brown and Michael Howard will deliver speeches on the economy to a British Chambers of Commerce conference in London.