Dyson calls UK approach to economy ‘stupid’on January 19, 2023 at 8:35 am

Sir James Dyson has accused the government of having a “stupid” and “short-sighted” approach to the economy and business in the UK.

The founder of technology firm Dyson said growth had “become a dirty word” during Rishi Sunak’s premiership.

Writing in the Daily Telegraph, the businessman urged the government to “incentivise private innovation and demonstrate its ambition for growth”.

The BBC has contacted the government for comment.

A prominent supporter of Brexit, Sir James said the government believed it could “impose tax upon tax on companies in the belief that penalising the private sector is a free win at the ballot box”.

“This is as short-sighted as it is stupid. In the global economy, companies will simply choose to transfer jobs and invest elsewhere,” he warned.

The high-profile businessman’s comments come after the government announced in the autumn £25bn worth of tax rises in an attempt to balance the books and restore credibility to the UK’s finances after the economic fallout of the Liz Truss and Kwasi Kwarteng mini-budget.

One of the many mini-budget polices reversed was changes to corporation tax, which is paid to the government by UK companies and foreign companies with UK offices. It is set to rise from 19% to 25% in April.

UK businesses, as well as households, are also dealing with the highest rate of inflation for four decades, with energy bills driving price rises through supply chains.

In his comment piece, Sir James repeated his concern over working-from-home policies following the height of the Covid pandemic.

He said the government had “yet to direct” workers to return to workplaces after “ordering them to stay at home”.

“This has badly damaged the country’s work ethic,” he said.

But the entrepreneur wrote that the UK could “turn things around, but only if fast-growing companies are allowed to thrive here”.

“And we will have to act fast – it’s a global race and our competitors are hungry.”

He said the government had a “role to play”, which started with the spring Budget in March.

“It must incentivise private innovation and demonstrate its ambition for growth,” he said.