Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Labour defends 50p tax plans after business backlash

2 Comments
Labour defends 50p tax plans after business backlash

Labour has defended its plans to bring back the 50p top tax rate, if its wins the election in 2015, after the idea was attacked by business leaders and some party donors.

The 50p top tax rate of income was introduced by the last Labour government in 2010 for anyone with income of more than £150,000.

The coalition government since reduced the rate to 45p. The Conservatives have questioned whether the tax brought in extra revenue for the government.

Shadow chancellor Ed Balls (pictured) unveiled Labour's plan during a speech at the Fabian Society on Friday. On Sunday, he hit back at criticism of the plans from business leaders, telling the BBC's Andrew Marr Show that the tax would be temporary and was not anti-business.  

Balls suggested the 50p rate would only be in place while Labour cleared the budget deficit, which it aims to do by 2020. He also ruled out raising it further.

A number of business leaders have attacked the plans, with 24 company bosses signing a letter to theTelegraph in which they called the plans ‘a backward step’, arguing it would impact the economic recovery and jobs.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Neil Gregson: gold is prettiest in ugly contest

Neil Gregson: gold is prettiest in ugly contest

The JP Morgan Natural Resource fund manager talks about the prospects for gold with plenty of uncertainty in the global economy.

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter