Economists: 50p tax rate is doing lasting damage to UK economy

Wednesday, 7 September 2011 11:25 AM

Letter from 20 economists to the Financial Times calling for the 50p tax rate to be scrapped:

"We are concerned that Britain's 50p income tax rate is doing lasting damage to the UK economy.

"It gives the UK one of the highest personal tax regimes in the industrialised world, making it less competitive internationally and making us less attractive as a destination for both foreign investment and talented workers.

"It punishes wealth creation by imposing on entrepreneurs and business people a marginal tax rate in excess of 50% once national insurance contributions are added in. This is particularly damaging when the UK needs to create new businesses in new industries.

"We call on the government to drop the 50p tax at the earliest opportunity as part of a package of measures to stimulate growth.

"Only by returning to an internationally competitive tax regime will Britain enjoy long-term sustainable economic growth."

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