Shadow Treasury minister Gareth Davies claims Labour has created a “hostile environment” for entrepreneurs and warns Ed Miliband would make matters worse if he becomes Chancellor.
A senior Conservative has accused Labour of driving wealthy taxpayers and businesses out of Britain with what he described as a relentless assault on enterprise.
Speaking to GB News, Shadow Exchequer Secretary Gareth Davies said Labour had created a “hostile environment” for investment through higher taxes, warning the country risks losing the very people who create jobs and generate economic growth.
“Everybody knows somebody who is leaving or has left already,” he said.
The Tory MP blamed the Treasury under Chancellor Rachel Reeves for encouraging an apparent exodus of wealth. “If you tax too much, people will leave and find other alternatives elsewhere. And that’s exactly what’s happening.”
Mr Davies said a future Conservative government would pursue a more competitive tax system designed to reward investment and entrepreneurship. “We would focus on enterprise and keep taxes as low as possible for those who create the employment in our country.”
His comments come amid growing speculation that Energy Secretary Ed Miliband could become Chancellor when Andy Burnham takes over as Prime Minister.
Mr Miliband is reportedly prepared to back the controversial Jackdaw North Sea gas project in an effort to reassure financial markets and demonstrate a more pragmatic approach to economic policy.
But Mr Davies argued that approving new drilling would count for little if Labour continued to increase taxes on businesses. “It’s all good and well pumping oil and gas, but if he’s going to tax the hell out of our businesses, that’s not going to help anybody.”
He also questioned whether Mr Miliband had truly abandoned his commitment to aggressive green policies. “We need to ensure that we use all the resources of the United Kingdom, not least oil and gas.”
Mr Davies added that even the Climate Change Committee had acknowledged Britain would continue to rely on a mix of energy sources for years to come.
Despite his criticism of Labour’s economic agenda, Mr Davies welcomed the Government’s decision to proscribe Iran’s Islamic Revolutionary Guard Corps as a terrorist organisation.
However, he argued ministers had acted too slowly. “It came a little late for our liking. Now it’s about execution.”
With Andy Burnham expected to enter Downing Street next week, the Conservatives are already sharpening their attacks, arguing Labour faces a choice between pursuing higher taxes or creating a more business-friendly economy.
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