One of the Tory party’s biggest donors has attacked the Rishi Sunak government’s planned series of tax increases this week as “anti-conservative” and has refused to commit to donating to the party next year.
CMC Markets founder and CEO Peter Cruddas described himself as “a big supporter of Boris” when asked about his support for the current Sunak-led government.
Prime Minister Jeremy Hunt announced a wide array of tax increaseThis includes raising corporate taxes from 19% to 25%, freezing income tax thresholds, and targeting dividend tax relief.
In response, Mr Crudas, who was allyed by former Prime Minister Boris Johnson, said, “It’s hard to separate this government from the Labor Party…it’s anti-conservative.”
Cruddas, the biggest donation in years, donated £500,000 to the party in February 2021, but has since cut back.
Cruddas owns over 60%. CMC Market That means he usually gets a hefty dividend given the corporate policy of sharing half of the after-tax profits. He added that he expects a £6m payout in the first half of the year, which could rise to £25m for the full year given the company’s rising profits.
Crudas said earlier this week that Snack and Hunt had no authority after being rejected by Conservative MPs in their respective leadership races against Johnson and Liz Truss.
When asked if he was a supporter of Sunak’s Conservative government, Crudas replied: “I am a supporter of democracy and a supporter of Boris Johnson.”
CMC offers spread betting for making leveraged bets on the financial markets and is looking to grow its unleveraged business with stock brokerage and investment services.
On Wednesday, the group said it had finalized plans to work on separating its investment businesses after a strategic review.
The company said it had “strong commercial and operational synergies .
Cruddas said separating the business was a “complex task” and “too big a task considering all the other opportunities.” Net investment income in the first half fell 14% to his £20.8m.
The company recently launched CMC Invest UK which includes ISAs, multi-currency accounts, mutual funds and SIPPS. He also pledges to launch CMC Invest Singapore by the end of 2023.
Net operating profit increased by a fifth to £153.5m in the six months to end September. Profit before tax increased by 1% to £36.6m.
The company’s three-year growth plan is on track, according to CMC, with new business expansion expected to boost net operating income by 30% over the next three years, with margin expansion beginning in 2024. .
When asked how the recession would affect the balance sheet, Crudas, who described CMC as “a business for all seasons,” said, “We’re doing great.”