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As the UK economic turmoil continues there is hope today that we may finally have seen the end of the boom and bust economic cycle if UK authorities learn by their recent mistakes. But is this...
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Thursday 21st June 2007
One of Britain's richest men has warned the growing divide between the rich and poor could see the Paris riots of 2005 replicated on the country's streets.
The warning from Sir Ronald Cohen, regarded as the father of UK venture capitalism, comes a day after some of Britain's leading private equity bosses gave evidence to a Parliamentary committee defending their "shadowy" industry.
But amid criticism from MPs and union leaders over unfair tax breaks and the job losses associated with private equity takeovers, the business chiefs insisted their firms were a "force for good" in the British economy.
Speaking to the Daily Mail today, Sir Ronald, who himself has a predicted personal fortune of �260 million, said that the growing wealth gap in the country was "something we should be concerned about".
He speculated that unless moves were made to address the divide then the civil unrest witnessed in the French capital in late 2005 could be transferred to Britain.
"Entrepreneurial economies which have high rates of growth and high rates of job creation do lead to great divergences in wealth," the Egyptian-born businessman said.
"When economic situations get bad, it takes a spark to ignite a violent reaction."
But Sir Ronald's comments have been criticized for being hypocritical, with his domiciled status meaning he avoids paying tax on overseas interests.
A spokesman later clarified his comments, saying he meant that when "people get left behind… it can lead to violence".
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