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Ed Miliband to hit back in row with Boots boss Ed Miliband to hit back in row with Boots boss
(about 3 hours later)
Ed Miliband is expected to criticise the boss of High Street retailer Boots after he warned that a Labour government would be a "catastrophe".Ed Miliband is expected to criticise the boss of High Street retailer Boots after he warned that a Labour government would be a "catastrophe".
Labour sources say Mr Miliband will join in the party's criticism of Stefano Pessina at an event later. In a newspaper interview, Stefano Pessina suggested Labour's policies would "not be helpful for the country".
In response, Labour criticised the Italian for not paying tax in the UK.
The BBC's Norman Smith said Labour seem determined to step up the row with Mr Pessina, despite criticism it risks presenting the party as anti-business.The BBC's Norman Smith said Labour seem determined to step up the row with Mr Pessina, despite criticism it risks presenting the party as anti-business.
Labour has already criticised Mr Pessina for not paying tax in the UK. Mr Pessina, who is chief executive of Boots' parent company Walgreen Boots Alliance, questioned Labour's business credentials in the Sunday Telegraph, suggesting a Labour government would "not be helpful for business".
The Boots chief executive questioned Labour's business credentials in the Sunday Telegraph, suggesting a Labour government would "not be helpful for business and not be helpful for the country".
"One thing is to threaten and to shout, but it is completely different to be in charge and to manage the country day to day," he told the newspaper."One thing is to threaten and to shout, but it is completely different to be in charge and to manage the country day to day," he told the newspaper.
"If they acted as they speak, it would be a catastrophe.""If they acted as they speak, it would be a catastrophe."
His comments have been seized upon by the Conservatives, who have claimed Labour are "unfit to govern" because they "do not listen to the UK's wealth creators".His comments have been seized upon by the Conservatives, who have claimed Labour are "unfit to govern" because they "do not listen to the UK's wealth creators".
In response, Labour has pointed out that the Italian businessman does not live in the UK and questioned whether Boots, which merged with Alliance Unichem in 2005 and recently joined forces with US firm Walgreens, pays its fair share of tax.In response, Labour has pointed out that the Italian businessman does not live in the UK and questioned whether Boots, which merged with Alliance Unichem in 2005 and recently joined forces with US firm Walgreens, pays its fair share of tax.
A string of other Labour MPs have also voiced criticism of the company's tax arrangements.A string of other Labour MPs have also voiced criticism of the company's tax arrangements.
A source close to Ed Miliband said: "British business and the British people should not be lectured about what's good for Britain by someone who doesn't pay taxes here."A source close to Ed Miliband said: "British business and the British people should not be lectured about what's good for Britain by someone who doesn't pay taxes here."
Labour has faced criticism from the business community for a number of its policies, notably its proposed freeze on electricity and gas bills and its pledge to raise the top rate of tax from 45p to 50p.Labour has faced criticism from the business community for a number of its policies, notably its proposed freeze on electricity and gas bills and its pledge to raise the top rate of tax from 45p to 50p.
'Tax exile''Tax exile'
Pro-business figures in the party, such as former business secretary Lord Mandelson, have also urged the party to be careful in the language it uses on business issues.Pro-business figures in the party, such as former business secretary Lord Mandelson, have also urged the party to be careful in the language it uses on business issues.
Shadow Chancellor Ed Balls described Mr Pessina as a "tax exile in Monaco" and suggested he "would be among a number of figures brought forward by the Conservatives over the next couple of months saying 'don't vote Labour'."Shadow Chancellor Ed Balls described Mr Pessina as a "tax exile in Monaco" and suggested he "would be among a number of figures brought forward by the Conservatives over the next couple of months saying 'don't vote Labour'."
"The idea that someone who does not pay any tax in Britain should be telling British people how to vote, will stick in the craw of many people," he told Radio 4's Today."The idea that someone who does not pay any tax in Britain should be telling British people how to vote, will stick in the craw of many people," he told Radio 4's Today.
Mr Balls said the "biggest risk" to business would be for the UK to exit the European Union, a move he said Labour completely rejected.Mr Balls said the "biggest risk" to business would be for the UK to exit the European Union, a move he said Labour completely rejected.
"When I was in Washington a couple of weeks ago, the big fear of US policymakers was a Tory government taking the UK out of Europe," he said."When I was in Washington a couple of weeks ago, the big fear of US policymakers was a Tory government taking the UK out of Europe," he said.
'Personal views'
He added: "Even though Mr Pessina has moved the tax domicile of Boots to Switzerland, the only tangible thing he said was his fear was of Britain leaving the EU and that is what I hear from businesses up and down the country all the time."He added: "Even though Mr Pessina has moved the tax domicile of Boots to Switzerland, the only tangible thing he said was his fear was of Britain leaving the EU and that is what I hear from businesses up and down the country all the time."
A Labour government, he said, would prioritise investment in infrastructure and ensure "fairness and prosperity go hand in hand".A Labour government, he said, would prioritise investment in infrastructure and ensure "fairness and prosperity go hand in hand".
"That is a much more pro-business agenda than we are getting from David Cameron at the moment.""That is a much more pro-business agenda than we are getting from David Cameron at the moment."
Walgreens Boots Alliance insisted Mr Pessina's comments had been "taken out of context".
A spokesman said: "The comments made by Stefano Pessina were a small part of a much larger conversation and have been taken out of context.
"As a businessman, international entrepreneur and investor, he takes a natural interest in a broad range of topics within the economic landscape of countries where he has business interests, like he has done previously in the UK, Europe and the USA.
"Stefano Pessina was expressing his personal views only and is not campaigning against Ed Miliband or the Labour Party."