Millionaires at war: Simon Cowell and Duncan Bannatyne take aim at Richard Branson and Victoria Beckham over their pleas for taxpayer help while they use their own cash to support staff
Duncan Bannatyne and Simon Cowell have hit out at mega-rich stars including Victoria Beckham and Sir Richard Branson for seeking millions of pounds from the taxpayer to bail out their failing companies.
Branson has asked for a taxpayer bailout to save Virgin Atlantic from collapse while Victoria Beckham told 30 employees at her fashion brand they are being put on the Government job retention scheme to pay up to £2,500 of their monthly salary.
In a furious Twitter row, Dragon's Den star Bannatyne - who has a net worth of £300million - said the billionaire Virgin Group boss should instead go to a bank for help.
And he also hit out at Branson's offer to mortgage Necker Island, his home in the Caribbean, as collateral to help get cash to 'save as many jobs as possible.'
In an open letter to staff Branson, who is worth £4.05billion, said he was not asking for a handout, but a commercial loan, believed to be £500m, after Virgin Australia went into administration.
Duncan Bannatyne and Simon Cowell have hit out at mega-rich stars including Sir Richard Branson (pictured) for seeking millions of pounds from the taxpayer to bail out their failing companies
The Dragon's Den star (left with his wife Nigora Whitehorn) said the billionaire Virgin Group boss (right) should instead go to a bank for help during a row with his followers on Twitter
It comes as:
- England, Scotland and Wales have announced 757 more deaths from the coronavirus today, taking Britain's total number of victims to 18,094;
- A further 665 people have died in England's NHS hospitals and 92 more deaths were recorded in Scotland and Wales overnight;
- Care Minister Helen Whately was savaged during a series of brutal interviews this morning as she struggled to provide answers to key questions on the supply of PPE, deaths of frontline workers and testing errors;
- Dominic Raab is said to have forced a top civil servant to drop his claim that snubbing EU procurement scheme on coronavirus PPE was 'political';
- Empty 4,000-bed Nightingale hospital turns away 30 'life or death' coronavirus patients from other packed London wards because it lacks nurses and has only treated a total of 40 people;
- Leaked memo reveals coronavirus tests given to NHS staff to let them return to work are flawed and gave false all-clear readings;
- An RAF plane carrying vital PPE lands in Britain but it only has half the promised 84 tonnes of equipment
It has been revealed that Simon Cowell has continued to pay his staff rather than rely on the taxpayer to pick up his worker's wages.
The TV tycoon has agreed to keep paying the 50 full time staff who work for his Syco production company in London and Los Angeles.
He has also donated £1.6m from his personal fortune to charities in desperate need of cash. Cowell is worth an estimated £385million, according to the Sunday Times Rich List.
Cowell, 60, has assured his staff they will not be placed on the furlough scheme even though the coronavirus crisis has shut down TV production of his shows in the UK and America.
He has now urged other celebrities and business leaders to 'rise to the challenge' of Covid-19.
Branson was slammed for appealing for taxpayer aid to help stricken Virgin Atlantic, rather than using his £4billion fortune.
Simon Cowell (left) has revealed he will continue to pay his staff rather than rely on the taxpayer. Victoria Beckham (right) told 30 employees at her fashion brand they are being put on the Government job retention scheme to pay up to £2,500 of their monthly salary
Duncan Bannatyne exchanged tweets with a follower on Twitter in which he hit out at Branson for not going to a bank to get a loan
Scottish entrepreneur Mr Bannatyne, who said he had supported his leisure business during the pandemic with increased bank loans, said in a tweet to a follower: 'Do you think the island is worth £500m?
He continued: 'I have gone to the bank NOT the UK tax payer. The bank. A viable business will get the money from a bank.
'I never slated him (Sir Richard) I said he should go to the bank for a loan not the hard working UK taxpayers that you show so little respect for.'
In another tweet he added: 'But tell me, why can't he borrow the money from a bank?
'In every company in the world the staff pay their taxes. So you are saying government should financially support every company that is in trouble?'
Sir Richard has also addressed the fierce criticism he has faced in recent weeks over his tax situation.
Sir Richard Branson has offered to remortgage his Necker Island home as collateral after asking the government for a £500m loan
Victoria Beckham is understood to be topping up their wages in an 'enhanced package' by paying the remaining 20 per cent – though she is not obliged to do so. Pictured, her store in Hong Kong
Critics have pointed out that Sir Richard has paid no UK income tax since moving to the tax-free British Virgin Islands 14 years ago.
In the open letter to staff at Virgin Atlantic he said: 'Many airlines around the world need government support and many have already received it.'
He said the crisis facing airlines is 'unprecedented.'
He also said despite his wealth, this did not mean he had 'cash in a bank account ready to withdraw'.
Hitting back at criticism that he was a tax exile who did not deserve help, saying he and his wife 'did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands and in particular Necker Island'.
He said Necker would be offered as security for any loans.
He added: 'As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as possible around the group,' Sir Richard said.
Sir Richard posted a link to an open letter to staff after Virgin Australia went into administration
Sir Richard is the 312th richest person in the world with an estimated $5.2bn fortune, according to the Bloomberg billionaires index.
Clydebank-born Mr Bannatyne recently told Sky News the coronavirus crisis could cost his business £30 million.
He had been backed by the Royal Bank of Scotland. About 2600 of his employees were put on furlough in March with 400 still working then.
On Monday Virgin Australia went into voluntary administration after failing to secure a government bailout due to impacts of the pandemic.
'Virgin Australia has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the Covid-19 crisis,' the airline said in a statement to the Australian Stock Exchange.
The move follows a board meeting of the firm's international shareholders who voted against providing more financial support.
The airline had asked the Australian government for £710 million but the request was denied.
Virgin Australia's board has appointed Deloitte has voluntary administrators.
The airline, which serviced domestic as well as short-haul international destinations, was founded in 2000 by Sir Richard Branson and was one of Australia's main aviation providers.
In a letter to the airline's staff, which he tweeted, Sir Richard said it 'is not the end for Virgin Australia, but I believe a new beginning'.
He said: 'Never one to give up, I want to assure all of you - and our competitor - that we are determined to see Virgin Australia back up and running soon.
'We will work with Virgin Australia's administrators and management team, with investors and with government to make this happen and create a stronger business ready to provide even more value customers, competition to the market, stimulus to the economy and jobs for our wonderful people.
'Virgin Australia has captured the hearts of all Australians. That is down to all of you - past and present - who made it the best airline to fly within Australia.'
Sir Richard owns around 10% of the company, which is also owned in part by Etihad Airways and Singapore Airlines.
Announcing his charity donation last month, Simon Cowell said he did not like to lecture other celebrities on what they should be doing, but suggested they had a role to play.
Sir Richard is facing a battle to save Virgin Atlantic and has asked for taxpayer bailout
He said: 'I know this is a hugely difficult time for so many — worries about family, health, jobs, paying the mortgage and feeding their family are at the forefront of people's minds.
'But there are still other people in business and in entertainment with resources available, so today it's those people I'm urging to rise to this enormous challenge.'
The number of staff Cowell will continue to pay is almost double the numbers Victoria Beckham placed on furlough.
She has told 30 of the employees at her fashion brand they are being put on the Government job retention scheme who will pay up to £2,500 of their monthly salary.
The decision by 46-year-old Beckham, who with her husband David has a fortune estimated at £355m, to use the Government scheme has been slammed.
Stella McCartney has also chosen to use the retention scheme with up to half her 1,400 staff being placed on furlough.
Cowell has remained in Los Angeles with his partner Lauren and six-year-old son Eric during the crisis which saw the finals of Britain's Got Talent postponed until later this year.
Auditions for the popular series have already been completed and the elimination rounds were due to begin in May.
Production is being put back to September, but even that depends on the relaxation of social distancing orders in the UK.
Cameramen and other production staff who work on the show are mostly freelance and hired for a set period during filming.
The TV mogul, who has a fortune estimated at £330m, is not responsible for their wages during the periods between productions.
An insider said those who were due to work in May will be used later in the year unless they have other work scheduled.
The Syco staff being kept on the payroll are employed at his offices in the UK and the US in an administrative role.
Cowell has donated $1m from his personal fortune to the charities Feeding Britain and Feeding America.
The organisations provide supplies to food banks for the needy.
Cowell has also pledged £500,00 to the Shooting Star Hospices, a charity he has worked with in the past.
The money will be used to shore up the finances of the charity that works with 800 families across the UK providing support.
Millionaires at war: Simon Cowell and Duncan Bannatyne take aim at Richard Branson and Victoria Beckham over their pleas for taxpayer help while they use their own cash to support staff
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April 23, 2020
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