The shadow chancellor refused to rule out a five-point rise in corporation tax . Ed Balls yesterday opened the door to a tax raid on businesses, which critics warn would endanger the economic recovery. In a TV interview, the shadow chancellor refused to rule out a five-point rise in the main rate of corporation tax if Labour form the next government. He was also evasive about the 40p rate of income tax, into which millions of people have been dragged in recent years, saying he was unsure how quickly the threshold could be raised. Businesses are already concerned about Labour’s stated plans not to cut corporation tax – paid by all large firms on their profits – as the Tories have vowed to if they win office. The main rate has been brought down under the Coalition from 28 per cent to 21 per cent. Asked if he would raise it, Mr Balls would only commit to keeping the main rate ‘the lowest in the G7’ group of countries. This leaves room to raise it up to 26.5 per cent, the level which is imposed in Canada. When it was suggested Labour could levy a rate of ‘24 per cent or 25 per cent’, he did not rule it out, simply saying: ‘We need to make sure we back businesses ... we will keep our rates low.’ John Cridland, director-general of the CBI, warned last week that Labour’s plans to intervene in markets, such as the energy market, and their ‘signals on corporation tax are a cause for concern’. He added that any rise in business taxes would ‘undermine progress to make the whole tax system more competitive and send the wrong signal to firms of all sectors and sizes.’ Conservative Treasury minister David Gauke said the prospect of a business tax rise was a ‘clear threat to working people’s future economic security’. He said: ‘It’s clear Ed Miliband and Ed Balls are leaving the door open to a damaging tax rise that risks costing jobs, risks costing investment and risks the economic recovery.’ The Right-leaning Centre for Policy Studies think-tank has said raising corporation tax to 24 per cent gradually over the next five years would cost nearly 100,000 jobs by the end of the Parliament. Labour say by keeping corporation tax at the current rate, they can freeze business rates for 1.5million small firms. The main rate has been brought down from 28 per cent to 21 per cent under the coalition with the Tories vowing to lower corporation tax if they win the Election . Lloyds bank shares on offer for all . Billions of pounds of shares in Lloyds bank will be sold off to the public at a discount rate within a year . Billions of pounds of shares in Lloyds bank will be sold off to the public at a discount rate within a year, David Cameron pledged yesterday. In the latest Tory attempt to revive the free market spirit of the 1980s, millions of small investors willing to spend £250 or more would be given priority access to shares still owned from the 2008 bank bailout. If the party wins the election, the sale would begin with a publicity drive similar to the ‘Tell Sid’ adverts that pushed the 1986 privatisation of British Gas. The plan would see up to £4billion of Lloyds shares sold off at a discount of at least 5 per cent, with individual investors allowed to spend up to £10,000. To counter any claims of a ‘get rich quick’ sell-off, buyers who keep the shares for a year would be rewarded with a loyalty bonus of one extra free share for every ten they hold. The sale would also recoup billions for the Exchequer to pay off some of the country’s vast national debts. Yesterday the Prime Minister told the BBC’s Andrew Marr Show this would be the first time there had been such an offer for individual investors. ‘The taxpayer put billions into these banks and I want to get the money back,’ he said. ‘At the same time I think having people being able to own shares in a healthy, successful British bank is the sort of country we should be building.’ Labour said the Tories had announced the sell-off policy seven times already – including before the last election. Lib Dem Danny Alexander said the idea had been rejected over the past five years ‘because it’s not been clear that we’d be able to get the money back for the taxpayer’. Lloyds was bailed out with £20billion of taxpayers’ money in 2008, leaving it 43 per cent state owned. The Government still owns £12.5billion of shares, which were worth 78.7p each on Friday – compared to the 73.6p paid by Gordon Brown.
Shadow chancellor refused to rule out a five-point rise in corporation tax .
He was also evasive about the 40p rate of income tax during interview .
Businesses are already concerned about Labour's plans not to cut tax .
The main rate has been brought down by coalition from 28 to 21 per cent .