View more on these topics

Businesses call for 50p tax rate to be shelved

More than 500 business leaders have called on Chancellor George Osborne to scrap the 50p top rate of tax in this month’s Budget.

A letter, signed by the owners of 537 small and medium-sized companies claims the tax reduces Government income and damages the economy.

Osborne has previously said the 50p rate is a temporary measure and asked officials to assess how much revenue it raises. The rate was introduced by Labour in 2009 to tax earnings of £150,000 or more.

The letter, sent to The Telegraph last week, says: “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 poorest in society. One per cent of taxpayers are forecast to contribute nearly 28 per cent of income taxes. But penalising high earners through an unfair, politically motivated tax puts populist politics before sound economics.”

She says: “When millions of families and pensioners on middle and low incomes are being squeezed by the VAT rise and cuts to tax credits, cutting taxes only for the richest 1 per cent cannot be the right priority now.”



Govt admits it must do more over ‘dodgy’ claims firms

The Government has admitted it needs to do more to address the “dodgy practices” used by some claims management companies. Speaking in the House of Lords this afternoon, justice minister Lord McNally said large amounts of money set aside by banks to compensate for payment protection insurance misselling was encouraging “dodgy practices” by CMCs. He […]


Closed with-profits funds must produce ‘run-off’ plans

With-profits providers which closed to new business before 2005 will be forced to produce ‘run-off’ plans under proposals outlined by the FSA. Providers are currently not obliged to produce a formal plan of how they will wind down closed with-profits funds to the regulator. The FSA says respondents had “broadly welcomed” the proposal, which will […]

UK’s AAA rating move didn’t hit

Gilt yields were largely unaffected by Moody’s decision to put the UK’s AAA credit rating on a negative outlook last month, say Bank of England governor Mervyn King. Giving evidence to the Treasury select committee last week, King said agencies provide valuable economic assessments but warned “we should not be slaves” to them. He said: […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm