BrewDog founder James Watt has taken aim at the UK Government, insisting its plan to hike capital gains tax will prompt an exodus of entrepreneurs.
Mr Watt said a decision to hike the tax would be a “hammer blow” to the UK economy.
He took to LinkedIn to direct a scathing open post to Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves.
Increasing capital gains tax, he said, would “destroy” the nation’s entrepreneurial spirit and in turn “severely damage our economy”.
“Most of the brilliant business minds that I know, the people who drive our economic growth and create our jobs, will simply leave the UK to build businesses and create jobs elsewhere,” he said.
“If we lose our brightest and best entrepreneurs, which we undoubtedly will if we significantly increase capital gains tax, we deal a hammer blow to the UK economy and the overall prosperity of every single UK family.
“Increasing capital gains tax will do far more damage to our economy than any gains we may experience from increasing this tax.”
James Watt on consequences for entrepreneurs
Mr Watt stepped down after 17 years at the helm of the Ellon beer company in May.
He handed the reins over to chief operating officer James Arrow to “concentrate on his other projects and interests” but retains a 21% shareholding.
Mr Watt, who now splits his time between homes in Aberdeenshire and London, said the Government needs to get on top of its mounting debt problem.
“Our national debt has skyrocketed from 25% of our GDP to 100% and it is crippling our nation,” he said.
“Unless we can reduce the debt, then our debilitating interest payments means we are stuck in a vicious cycle of paying ever-increasing amounts of taxes for ever-diminishing quality of services.”
BrewDog stock market listing
He made the comments ahead of a possible stock market float which could value BrewDog at £1.8 billion.
But admits writing the open letter is “probably futile”.
He adds: “Perhaps the seeds of our democracy’s demise are hardwired into our political system.
“Sadly, every government is incentivized to increase the debt (so as to avoid unpopular austerity) which not only kicks the problem down the road, but massively increases the ferocity of the wolf at our door.
“But if is not your door in five or 10 years’ time then who cares about the wolf?”
Chancellor Rachel Reeves’ Budget will take place on October 30.
She says it will involve “difficult decisions” on tax, spending and welfare.
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