The writers argue that the cut in tax would attract entrepreneurs to the UK who can help the economy to grow and provide jobs and that the “current turmoil in southern Europe” means that the Government must take “immediate actions” to boost confidence.
Among the signatories are Sir Nigel Rudd, the chairman of BAA, the airports operator; Chris Grigg, the chief executive of British Land; Tony Pidgley, the chairman of Berkeley Group, the house-builder and Harvey McGrath, the chairman of Prudential.
In the letter, the business leaders say: “We would encourage an acceleration of the Government’s commitments on two areas of tax policy: increasing the personal allowance and restoring 40 per cent as the top rate of income tax.
“An early removal of the temporary 50 per cent tax rate would attract wealth generators to the UK and support the entrepreneurs we need to help us grow the economy and provide jobs.”
Vince Cable, the Business Secretary, said yesterday that tax cuts were not currently being planned. “It’s difficult to make tax cuts in an environment where we’re trying to get budget discipline back,” he said.
However, he added: “The Chancellor is looking at all options. I’m not ruling anything out”. Mr Cable also raised the prospect of “Armageddon” in the British banking system in the event of the collapse of the single currency.
An aide to Mr Osborne said last night: “We welcome this contribution from business leaders. We have already increased capital spending above Labour and taken a million people out of tax. We have asked the HMRC to look at the 50p rate and await the report.”
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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