Former Conservative Shadow Treasury chief secretary Howard Flight has criticised the Government for pushing entrepreneurs out of the country.
Speaking at the Enterprise Investment Scheme Association awards last week at the House of Commons, Flight said overspending and increased taxation have resulted in lower productivity growth for the British economy. He said it is entrepreneurs who have kept the economy afloat.
Flight, who chairs the Eisa, said: “Large publicly-quoted companies are constrained by the growing volume of regulation and corporate governance requirements. Not surprisingly, it has been the pri-vate equity sector to which much of the entrepreneurial talent in the UK has migrated.
“More than half the jobs in the private sector are now provided by small and medium-sized businesses and enterprise investment schemes have served to attract 12bn of funding to thousands of new businesses.”
Keynote speaker and Alchemy Partners managing partner and founder Jon Moulton criticised Chancellor Alistair Darling’s plans to introduce an 18 per cent flat-rate capital gains tax and remove taper relief. He suggested that a 10 per cent flat rate would be more appropriate.
He said: “At a time when the economy is heavily reliant on business entrepreneurs to take risk, the Government has massively disincentivised investors with ill-thought-out changesto capital gains tax.”