City heavies put weight behind Labour

THE Government received major backing from a group of business leaders today as Chancellor Gordon Brown began a week of campaigning on the economy.

In a letter to the Financial Times, 63 business leaders wrote: 'Since 1997, Labour has presided over a period of economic stability and growth unprecedented in modern times. We live without the spectre of inflation, unemployment levels have continued to fall and interest rates have remained at their most stable since the 1960s.

'Britain has also become a more entrepreneurial society. Labour has fostered an environment in which the starting of a business is easier, faster and cheaper than in many major competitors. Over 1000 businesses a day now start up under Labour.'

{1}The signatories include four heads of FTSE 100 companies - ITV chief executive Charles Allen, United Business Media chief executive Lord Hollick, Allied Domecq chairman Sir Gerry Robinson and Standard Chartered Bank chairman Bryan Sanderson.

The letter has echoes of a similar one from 58 business leaders, published in The Times ahead of the last general election in June 2001.

In a clear attack on the Conservatives, who publish their business manifesto today, it states: 'The future success of the country does not lie in plans to cut £35bn in public spending, which would be damaging to the skills, science and business support agenda.'

At the last election, the Conservatives responded to The Times letter with their own, signed by 144 business executives.

Today's missive bears many of the same names as that of 2001 but several key figures are missing.

Gone are Sir Allan Leighton, former chief executive of Asda and then, as now, chairman of the Post Office; Lattice chairman Sir John Parker; London Bridge Software millionaire Gordon Crawford; David Potter, former chairman of Psion; Adam Singer, former boss of Telewest; bookshops chain founder Tim Waterstone; and Lord Simpson, former chairman of Marconi.

But many of the names are the same, including Sir Alan Sugar of Amstrad; John Napier, now chairman of Yorkshire Water group Kelda; Lord 'Sandy' Leitch; Chrysalis chairman Chris Wright; and Peter Harper, former director of Hanson, Lonmin and John Laing.