Economists call on coalition to ditch 50p tax rate

Capital Economics' Roger Bootle is among 20 of the UK's leading economists urging the coalition to drop the 50p tax rate, calling the top levy a "self-defeating" way for the Treasury to raise money because it risks driving away the nation's wealth creators.

In a letter to the Financial Times, the signatories said they are concerned the 50p income tax rate is "doing lasting damage to the UK economy". It comes as Chancellor George Osborne last night said the coalition had revised down its short-term hopes for the economy on recent, weaker-than-expected data in retail spending, construction and output. The economists write in their letter that they welcome the government's decision to continue to promote growth, but they argue while other major economies have successfully returned to pre-recession levels, the UK has not. They argue the 5...