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The man dubbed the UK's biggest taxpayer has told John McDonnell the super-rich would flee the country if Labour takes power.

In a fiery clash hosted by the BBC , John Caudwell told the shadow chancellor he would be among the exodus of wealth if Labour party wins the election this week.

The Phones4u founder and philanthropist went head-to-head with the shadow chancellor after the politician invited him for tea.

The pair locked horns in a spirited debate, with the billionaire taking Mr McDonnell to task over Labour's taxation plans and his recent declaration that "nobody needs or deserves" to be a billionaire.

But the politician fired back at him - saying Labour is proposing tax reforms targeting Britain's highest earners to try to create a fairer society amid increasing poverty.

Caudwell is known as the UK's largest taxpayer and commands a £1.6 billion fortune, according to this year's Sunday Times Rich List.

Jeremy Corbyn's Labour Party has taken aim at Britain's extreme wealth in its manifesto, vowing to raise the income tax rate for the top five per cent and to reverse some of the Tories' corporation tax-cuts.

One third of the UK’s super rich have donated £50million to the Tories since 2005 – and 10 of Britain's 151 billionaires have given cash since Boris Johnson revealed in May that he wanted to be Prime Minister, the party's analysis has found.

Labour has slammed Tory tax-breaks for the uber-rich while the rest of the UK grapples with the effects of austerity.

But Mr Caudwell has labelled Mr McDonnell's declaration a "divisive message" and warned the party's rhetoric could create a wealth vaccuum.

In the BBC clip, Mr Caudwell tells the politician: "Nearly every wealthy person I know is thinking of leaving the UK - including me - if Labour get in."

(Image: IAN VOGLER/DAILY MIRROR)

In the clip he estimates he has paid more than £300 million in income tax and capital gains tax.

He added: "And I'm happy to do that because it's a contribution to society. The society that helped me be successful, and a society that desperately needs my tax dollars."

Mr Caudwell also claims he spends at least 60-70 per cent of his "waking hours" on charitable endeavours.

Asked why he was upset by Mr McDonnell's comments about the super-rich, Mr Caudwell explains: "When I hear words like, or phrases like, 'nobody deserves to be a billionaire' and phrases like 'we're going to tax high technology companies' it frightens the living daylight out of me and out of society."

Mr McDonnell then told him he applauded Mr Caudwell's contribution - and said he paid tribute to entrepreneurs who create wealth and pay their taxes "responsibly."

(Image: Getty Images)

He added: "But it is about having a fair taxation system as well."

Mr McDonnell told Mr Caudwell he was born in an area "now seen as one of the worst slums in Europe" - Scotland Road near Liverpool's docks.

"We're now in a situation where we've got levels of poverty I never thought I'd see return again. So having that fair taxation system will enable that to happen."

The party is also proposing to reverse some, but not all, corporation tax cuts, Mr McDonnell added.

Asked if he would have been able to start his business today under the conditions Labour is proposing, Mr Caudwell claimed he would not.

Mr McDonnell then challenged him, as the businessman asked: "Why would I stay in a political environment that's unfriendly and not encouraging entrepreneurship?"

As Mr McDonnell protested, Mr Caudwell told him: "You're creating a divisive message."

(Image: IAN VOGLER/DAILY MIRROR)

He then accused the party of "destroying confidence."

Mr McDonnell encouraged anyone worried about its policies to "come and talk to us" as the businessman rubbished his offer, claiming it would not ease the anxieties about the party's goals.

Mr Caudwell then asks Mr McDonnell outright: "Does the Labour party believe there should be no billionaires?"

The shadow chancellor replied: "Some people have said that. We've said all we want is a fairer society."

Asked if he personally thought there should be no billionaires, Mr McDonnell said: "To be honest I don't think it matters - the scale of how much people have - as long as the equality is greater."

Mr Caudwell told him: "We need to encourage people to be inspired, to be successful and to make Britain great- to create the money.

"But we also need to inspire them to stay onshore, to pay the taxes, to pay fair taxes and to be charitable."

He said paying a 50 per cent income tax rate would be "nothing to me if it's fair."

However he went on to outline fears that his taxes would increase to that level under Labour while his counterparts in tax haven Monaco pay "nothing."

Mr McDonnell told him Labour does not plan to start a "race to the bottom" and proposes policies he says balance fair taxation against investment and growth in the UK economy.

He says Labour wanted Brits to "live in a society like you that they take pride in living in."

Despite their differences on the questions of wealth and taxes, the pair are seen laughing and shaking hands at the end of the clash as the billionaire tells the politician he enjoyed the debate.