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Investor slams Miliband Dragons Den tax
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Business angel Jeremy Middleton, who recently invested in Lincolnshire-based ECO Plastics, has hit out at Labour plans to impose a "Dragons' Den" tax.
Middleton slammed party leader Ed Miliband's floated proposals to levy higher taxes on private equity firms as "anti-business" and detrimental to wealth creation.
Miliband told the party's annual conference that the days when all businesses are taxed and regulated equally should be over. Instead, companies will be judged according to how they make their money.
"Many go-ahead businesses and entrepreneurs turn to business angels and private equity companies for financial support to help fund expansion plans or propel a new product or service into the marketplace," said Middleton, who runs Middleton Enterprises.
"Business angels and private equity companies make a substantial contribution to the economic wellbeing of the UK. Their investments are crucial to sustaining job and wealth generation across the country, particularly at a time when banks are reluctant to lend to business.
"Investors, such as those on Dragons' Den, should not be penalised through higher taxes for their financial patronage of entrepreneurs or business owners with well thought out strategies to develop their companies.
"This 'Dragons' Den' tax would be disastrous for companies, which have ambitions and workable plans to grow their businesses, but do not have the financial wherewithal to do it without outside financial support."
Since his speech, Miliband has denied claims that his Labour conference speech was "anti-business".
Middleton invested in ECO PLastics for the second time earlier this month. The latest backing brings Middleton's total investment in ECO Plastics close to the £250,000 mark.
As part of its expansion plans, ECO Plastics intends to increase its workforce by 30 to 160, after forming a joint venture with Coca-Cola Enterprises.
The Lincolnshire company said it is increasing overall processing capacity at its plant from 100,000 tonnes to 140,000 tonnes of plastic bottles per year, just under half the total collected in the UK last year. The expanded facility will be fully operational during 2012.
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