Unions demand end to tax breaks for takeover merchants
100 MPs petitioned to withdraw relief on loans to venture capitalists, as Sainsburys becomes acquisition target
The general secretary of the
GMB has called for tax
relief on loan interest payments for venture capitalists to be revoked in a bid
to safeguard members’ jobs.
As private equity groups announced their interest in
Sainsbury’s as a takeover target,
Paul Kenny led the push for change by personally writing to 100 ministers
including Jack Straw and Alistair Darling.
Kenny believed that a withdrawal of the relief was a key part of reining in a
sector that impacted on ‘companies jobs, pensions and the British economy’.
Leaders of the Transport & General Workers Union, the mouthpiece for
25,000 Sainsbury’s workers are preparing to weigh into the argument by writing
to the Department of Trade & Industry
detailing its members’ concerns about the potential £10bn takeover.