Top bosses set to blast Blair

PRIME Minister Tony Blair faces a fresh onslaught on taxes and red tape this week from the leaders of some of Britain's biggest businesses.

Sir John Bond, chairman of banking giant HSBC, Lord Browne, chief executive of BP and Niall FitzGerald, chairman of Unilever, will warn that their companies and others may go overseas unless something is done.

These top-ranking industrialists, part of the little known but highly influential Multinational Chairmen's Group, are due to discuss international business and trade with the Prime Minister.

But together with corporate bigwigs Lord Blyth, chairman of Diageo, Sir Christopher Hogg, chairman of GlaxoSmithKline, and representatives of Footsie firms including Vodafone, Shell and British American Tobacco, they are also expected to attack Blair and Labour's record in general towards business.

Key concerns include new personal pension plan limits of £1.4m, due to be introduced in 2005. Under the rules, pensioners collecting more than £70,000 a year would be hit with an effective tax rate of 60%. The chairmen argue this will scare off the best talent.

Changes to corporate governance, pushed through under Labour, are also a worry. Biggest complaint is they could weaken the role of the chairman.

Other major concerns include the damaging effect of higher taxes to pay for increased spending on public-services and the Government's poor record on transport.

Amid the growing threat that multi-national firms will move their power bases abroad, even if they keep nominal head offices in the UK, comes a CBI report today warning of a 'relentless build-up' in regulations.