Senior business figures hit out at Labour's 50p tax rate plan They warn that the 50p rate "will have the effect of discouraging business investment in the UK" and is a "backward step" that would quickly lead to job losses. Charlie Mullins, the founder of Pimlico Plumbers, said it would trigger an exodus of investors like that seen in France after President François Hollande increased the top rate of tax to 75 per cent. "It would be suicidal," he said. Business people are against paying tax, just not at such a punitive rate. Another signatory is Richard Caring, the owner of Le Caprice and the Ivy restaurants who has an outstanding £2 million loan to the Labour Party. He said he was "deflated to see this negative political attack on those trying to support the fragile recovery ... This is a complete downer and discouragement for entrepreneurs." Sir Stuart, who led Marks & Spencer for six years, added: "This will put at risk all the good work that has been done to put the economy back on track." Sir Ian, whose company's stores include B & Q and Screwfix, said: "Raising the rate is bad economics and sends an anti-business message." Boris Johnson, the Mayor of London, urged George Osborne to "open up some more blue water" between the Tories and Labour and cut the top rate back to the pre-2008 rate of 40p. Mr Johnson writes in his Telegraph column today that politicians should encourage those who "put in the back-breaking hours" and without whom the welfare state could not exist. He adds that Mr Balls's proposal shows "the real instincts of the Labour party, now way to the Left of New Labour: populist, anti-capitalist and anti-business." Lord Jones, the former Labour trade minister and chairman of the CBI, accused Mr Balls of appealing to tribalism with a measure that was "great politics but it's lousy economics." He added that if Mr Balls became chancellor he would be "amazed" if he resisted putting the rate up further to 60p - a level last seen in 1988. The shadow chancellor insisted he would not go that far, saying: "It's absolutely not back to the 1980s or 1990s." He also told BBC One's The Andrew Marr Show that he was unsure how much extra revenue the measure would bring in, but said the 50p rate - introduced as a stop-gap measure in response to the financial crisis in 2009 - had brought in £10 billion over three years. He said independently verified Government figures that showed cutting the top rate to 45p had only cost the country £100 million were "highly uncertain." The views of business leaders on tax policy have played a crucial role in previous election campaigns. In March 2010, 23 senior businessmen endorsed George Osborne's plan to halt planned increases in National Insurance, in a major boost to the party. The Letter We are concerned to see Ed Balls and the Labour Party calling for higher taxes on businesses and business people. We think that these higher taxes will have the effect of discouraging business investment in the UK. This is a backwards step which would put the economic recovery at risk and would very quickly lead to the loss of jobs in Britain. Your sincerely John Ayton, Chairman, Bremont Karren Brady, Vice Chairman, West Ham United Richard Caring Sir Ian Cheshire, Chief Executive, Kingfisher Neil Clifford, Chief Executive, Kurt Geiger Andrew Coppel, Chief Executive, De Vere Group Peter Cullum, Executive Chairman, Towergate Philip Dilley, Chairman, London First Rupert Gavin, CEO, Odeon UK Michael Gutman, Chief Executive, Westfield Group Anya Hindmarch, Founder, Anya Hindmarch Brent Hoberman, Executive Chairman, mydeco Luke Johnson, Chairman, Risk Capital Mike Lynch, Chairman, Invoke Capital; Founder, Autonomy Alistair McGeorge, Chairman, New Look Charlie Mullins, Founder and CEO, Pimlico Plumbers Tim Oliver, Founder and Chairman, Hampden Sir Stuart Rose, Chairman, Ocado Rob Templeman, Chairman British Retail Consortium, Gala Coral and the RAC Michael Tobin, Chief Executive, Telecity Ted Tuppen, Founder, Enterprise Inns Joseph Wan, CEO, Harvey Nichols Paul Walsh Will Wyatt, CEO, Caledonia Sir Hossein Yassaie, Chief Executive, Imagination Technologies This letter is signed in a personal capacity.