This is all rather simple, Labour (and the EU) always talk about how "we must have ‘growf", but have STILL not fathomed that only Business/Private Sector growth pays all the country bills and pay our way in the world via world trade e.g. the UK cannot IMPORT Mangos and EXPORT UK government Quangos.
Labour governments have a terrible record of building unsustainable economies with wasteful government spending, funded by over taxing small, medium, and large businesses, so AT BEST they don’t invest/hire, at worst, they contract/fire.
While everyone talks about higher wages through a great recession, here are the other costs BUSINESSES have to plan several ahead for & absorb, that tend to go one way under Labour, UP.
Higher Corporate Tax.
Higher Business Rates (local).
Higher Income Tax compensation (via salary) for senior staff, using international remuneration scales.
Higher regulatory/red tape costs.
Higher National Insurance costs.
Higher raw material costs.
Higher Fuel Escalator costs,
Higher costs of government controls i.e. tobacco, food, energy and god knows what else.
Higher Interest Rate/Borrowing Costs as they ‘normalize’ + a political risk premium?
And Boots is not the only business cacking themselves Labour (and SNP) will be running the UK, and the affect will be THE SAME AS IN THE EU, businesses will scale down investment and hiring plans.
“Ed Miliband is like Francois Hollande, business leaders warn”
uk.finance.yahoo.com/news/ed-miliband-francois-hollande-business-105324762.html
“Business leaders warn that Ed Miliband will prove to be 'anti-business' if he wins the General Election”
“Ed Miliband will be like Francois Hollande and damage the economy with a series of "punitive" tax rises if he wins the next election, business leaders have warned.”
“Writing in the Financial Times, they warned that a future Labour government will prove to be "anti-business" and deter investors.”
Labour could not cut the size/waste in the Public Sector in 2010, as public sector and other trade unions were funding around 90% of their General Election campaign, to similar to countries like Greece and France, the weight/cost of the public sector, drags down the private sector - which then has to slash government spending whether voluntary, or via the IMF, Labour last called in to bail us out in 1976.
Businesses saw Brown was going to keep their tax rising plans until AFTER the 2010 general election, and Miliband is doing the same, bar a few ideological ones for votes, that won't raise nearly enough money for their spending cut promises.
Businesses are not run as a social experiment for government, they are accountable to their shareholders e.g. our pension funds.
So until socialist governments remain oblivious to the facts if they keep putting all the costs of DOING business up, there has to be an investment/hiring/wages negative reaction = less tax receipts to fund their bloated States.