UK’s richest man James Dyson says ‘spiteful’ tax hikes will kill growth

The tax hikes on UK businesses in Chancellor Rachel Reeves’ first budget will lead to the “death of entrepreneurship” and could “kill off” growth, according to James Dyson, the billionaire founder of vacuum cleaner maker Dyson Ltd.

In an opinion piece for The Times newspaper, the tycoon said that the new Labour government’s fiscal plans are “spiteful” and will cause small businesses to suffer. Dyson is the UK’s wealthiest resident with a fortune of US$21 billion, according to the Bloomberg Billionaires Index.

“Make no mistake, the very fabric of our economy is being ripped apart. No business can survive Reeves’s 20 per cent tax grab. It will be the death of entrepreneurship,” he said, referring to an inheritance tax clampdown on business owners at Wednesday’s budget.

“It detests the private sector and has chosen to kill off individual aspiration and economic growth,” he said.

The remarks are the most high profile attack from a British business leader since Reeves’ budget after firms were forced to shoulder the bulk of her £40 billion (US$51.9 billion) of tax rises.

While Labour went on a charm offensive with businesses before its landslide election victory on July 4, firms were targeted by Reeves at Wednesday’s budget.