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Ed Miliband hits back in row with Boots boss Ed Miliband hits back in row with Boots boss
(35 minutes later)
The boss of High Street retailer Boots "ought to pay his taxes" rather than "trying to lecture us about what we should be doing in this country", Labour leader Ed Miliband has said.The boss of High Street retailer Boots "ought to pay his taxes" rather than "trying to lecture us about what we should be doing in this country", Labour leader Ed Miliband has said.
In a Sunday newspaper interview, Stefano Pessina suggested Labour's policies would "not be helpful for the country" and could be a "catastrophe".In a Sunday newspaper interview, Stefano Pessina suggested Labour's policies would "not be helpful for the country" and could be a "catastrophe".
In a question and answer session with young people on Sky News Mr Miliband said: "People won't take kindly to someone avoiding his taxes telling them how to vote."In a question and answer session with young people on Sky News Mr Miliband said: "People won't take kindly to someone avoiding his taxes telling them how to vote."
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.
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".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".
"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. Mr Miliband suggested that "people at the top" needed to show responsibility when it came to paying taxes and suggested businessmen like the Monaco-based Mr Pessina had formed "an unholy alliance" with the Conservatives to argue that "the country cannot change".
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. "It turns out that the chairman of Boots lives in Monaco and is actually avoiding his taxes," he said.
"I don't think people in Britain are going to take kindly to being lectured by someone who is avoiding his taxes on how they should be voting in the UK general election."
'Tax exile''Tax exile'
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.
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 suggested Mr Pessina "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.
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''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 for 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."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.""Stefano Pessina was expressing his personal views only and is not campaigning against Ed Miliband or the Labour Party."
In his Q&A with 18-24 year-olds, Mr Miliband said he could not promise to bring back the educational maintenance allowance for low-income pupils scrapped by the coalition but suggested he wanted restrictions on unpaid internships.
Asked what experience he had of life outside politics. Mr Miliband cited his time as an adviser in the Treasury and a year lecturing in European politics at Harvard University in the US, which he said had enabled him to "listen and learn" from young people.