Ed Miliband's attack on "bad" businesses and "rip-off" Britain has been denounced by employers.

The Labour leader yesterday told the party conference in Liverpool that "good" enterprises contributing to society should be rewarded while "asset strippers" and "predators" should be punished. He promised "a new economy" to replace a "something for nothing" culture.

Miles Templeman, chairman of Faversham brewer and pub owner Shepherd Neame, and director general of the Institute of Directors, said: "We would like to know how Ed Miliband plans to identify and reward "good" companies over "bad" ones. In practice, we think he would find this neither straightforward nor desirable. He should have more faith in customers and investors to decide."

Roger House, chairman of the Federation of Small Businesses in Kent and Medway, claimed Mr Miliband's speech contrasted with the pro-small business words by Shadow Chancellor Ed Balls the previous day.

"The FSB is disappointed that the Labour leader does not understand how jobs and apprenticeships are created in the real world."

The CBI said companies were working tirelessly to create the wealth and jobs in "extremely tough times."

Mr Miliband should be careful not to characterise some businesses as asset strippers.

Former CBI director-general Lord Digby Jones said the speech suggested the new Labour leader was not business-friendly.

But the Labour leader won support from the GMB trade union. General secretary Paul Kenny said he was "right to separate the wealth creators from the asset strippers and to side with the producers against the predators.

He is on the side of the British people and he wants to stop the rip offs from wherever they come."