Labour Conference 2011: Tax 'bad' businesses more

Private equity firms and businesses deemed to be "asset strippers" will face higher taxes under a Labour government, Ed Miliband will warn today, under plans to judge firms on how they make money.

Miliband will tell the party's annual conference that the days when all businesses are taxed and regulated equally should be over, according to the Telegraph.

Firms deemed to be behaving responsibly and which contribute to society will be offered financial incentives by the government, he will say, while "asset strippers" will face higher taxes.

According to Labour sources, Miliband regards companies such as Southern Cross, the nursing home operator run by private equity investors that is in the process of being wound down, as exemplifying the wrong sort of business.

It was accused of trying to generate excessive profits while placing thousands of vulnerable residents in danger of homelessness.

Miliband will argue that no longer is it true to say a political party is pro or anti-business.

He will tell delegates in Liverpool: "Let me tell you what the 21st-century choice is: are you on the side of the wealth creators or the asset strippers?"

While not spelling out the detail of how venture capitalists in particular could be assessed, Miliband believes a tougher tax regime could be imposed on some firms deemed less responsible than others.

He will say businesses that secure government contracts will have to offer apprenticeships and Miliband will propose reforms to the tax and regulation system to give incentives to firms that "make a wider contribution to the economy".