Labour pledges drive over 100 top bosses to back Tories in letter of support

LONDON (ShareCast) - More than 100 business have declared support for a Conservative government in an open letter published in the Daily Telegraph, as the prioritisation of small firms and the reform of zero-hour contracts prove unpopular with top bosses. The signatories have praised the move to a lower corporation tax of 20%, from 28%, arguing that it has supported investment and job creation.

"We believe a change in course will threaten jobs and deter investment. This would send a negative message about Britain and put the recovery at risk," they said in the letter.

Among the signatories were five ex-Labour supporters: Surinder Arora, managing director of Arora International; Duncan Bannatyne, founder of Bannatyne Group; Sir Charles Dunstone, chairman of Dixons Carphone (LSE: DC.L - news) and Talk Talk; Sir Cameron Mackintosh, founder of Cameron Mackintosh; and Moni Varma, managing director and chairman of Veetee Rice.

Labour's shadow business secretary Chuka Umunna said of the letter: "No one will be surprised that some business people are calling for low taxes for big businesses. But whilst the recovery may have reached some firms it hasn't reached many others which is why we will prioritise tax cuts for the smallest firms with an immediate cut in business rates for 1.5 million small business premises." Alongside a prioritisation of smaller firms, Labour leader Ed Miliband reiterated Labour's commitment to guarantee zero-hour contract workers the right to regular contracts after 12 weeks, instead of the 12 months previously put forward. Many large business have criticised the move, claiming that the contracts offer workers flexibility and freedom, especially in part-time capacities.

At a campaign event in Yorkshire, Miliband said: "Zero-hours contracts is just one example of the insecurity in our economy and what has happened in the last five years." Other signatories include 20 long-standing Conservative supporters, FTSE 100 business leaders and major retailer bosses.