Reeves’ income tax decision to hit wealth creators, warns Castore CEO
The co-founder of sportswear brand Castore has hit out at Chancellor Rachel Reeves for freezing income tax thresholds as a “way of delaying the inevitable impact for entrepreneurs and wealth creators”.
Tom Beahon, who leads the Manchester-headquartered company alongside his brother, added that “you can’t build a growth economy by disincentivising risk taking”.
Announced in the Budget today, more than 10m people are set to be dragged into higher income tax bands by 2030 because of the threshold freezes.
The move was first revealed in the OBR report which was accidentally published before the Chancellor started talking in the House of Commons.
The policy means that 5.2m people will start paying income tax for the first time.
A further 4.8m people will pay the higher rate band and 600,000 people will pay the additional rate band.
According to Reeves, the freeze in income tax thresholds will raise £8bn.
It will lead to 780,000 more basic rate taxpayers and 920,000 more higher rate taxpayers.
Castore boss hits out at Rachel Reeves
Beahon said: “Freezing thresholds for longer is a way of delaying the inevitable impact for entrepreneurs and wealth creators.
“You can’t build a growth economy by disincentivising risk taking.
“At Castore, we’ve created jobs and invested in the North because we believe in Britain’s potential but an agenda that taxes success rather than supports it makes that harder.
“We need an environment that rewards ambition, if the government really wants to unlock growth.”
Castore is backed by a number of high-profile figures including Andy Murray and the billionaire Issa brothers.
Reports have been circulating all year that the business is considering becoming a public company.
However, it is not clear whether Castore will choose the London Stock Exchange or a rival such as New York.