A business angel with more than £10m invested in companies across the North East has slammed Labour proposals for a “Dragons’ Den” tax.
Jeremy Middleton, who runs Middleton Enterprises labelled Ed Miliband’s proposal to levy higher taxes on private equity firms as “detrimental to wealth creation.”
Speaking following Mr Miliband’s party conference speech, Mr Middleton said: “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.
“Business angels and private equity companies make a substantial contribution to the economic wellbeing of the UK.”
Mr Middleton believes that Business Angel investments are crucial to sustaining job and wealth creation, especially at a time when banks are reluctant to lend to both new and established businesses.
“Investors, such as those on The 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.”
He went on to say that a Dragons’ Den tax would be disastrous for companies who have good plans and ambitions, but lack the financial means to grow their businesses.