Business leaders to govt: Scrap 50p tax rate

The 50p top rate of tax is damaging the economy and reducing government income, according to a letter signed by more than 500 business leaders.

In a letter to the Daily Telegraph, they called for the rate - introduced by Labour and which the government maintains is a temporary measure - to be scrapped in next month's Budget. The letter, from the owners of 537 small and medium-sized businesses, reads: "Given the current state of the UK economy, we urge the Chancellor to urgently consider scrapping the top rate of tax in his forthcoming Budget. "The tax, which is in effect a 58p tax after national insurance is taken into account, puts wealth creators like us in a very awkward position. "We believe the richest should help the...