DEMANDS by Labour MPs for higher taxes have been savaged as “just nonsense” by business bosses.
Former Cabinet Minister Louise Haigh urged Sir Keir Starmer to respond to the local election thumping by ramping up public spending.
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She said he must “rip up” the pledge not to raise income tax, national insurance on employees, or VAT to fund a programme of reindustrialisation.
But her clarion call was shut down by Phones4U founder John Caudwell, a former Tory donor who backed Labour at the election.
The tycoon told Times Radio: “Tax hikes are not going to re-industrialise the economy.
“I mean, how does she think she’s going to do that?
“They are just straplines with no substance behind them. If she came out with some substance that was worth listening to, I think that’s just nonsense.
“We’re not going to re-industrialise by hiking taxes.”
Chancellor Rachel Reeves already raised taxes by £45billion at the last Budget, and could do so again if poor growth puts her at risk of breaking her fiscal rules.