George Osborne should introduce 40p top tax rate, Boris Johnson urges in attack on Ed Balls

 
Defence of the rich: London Mayor Boris Johnson and wife Marina Wheeler Picture: Alex Lentati
28 January 2014

Boris Johnson today called on George Osborne to cut the tax rate for the country’s wealthiest to just 40p.

The Mayor spoke out amid a backlash against a pledge by Labour’s Ed Balls to raise it to 50p instead.

Attacking the Balls plan as damaging to the economy, Mr Johnson said in his weekly Telegraph column: “The Government should open up some more blue water, and cut the top rate back to 40p.” His call will go down well with Tory MPs keen for a bolder return to Thatcherite tax-cutting.

The 50p top rate was introduced by Labour but reduced to 45p last year by the Chancellor. Mr Balls announced Labour would restore its higher level.

Today shadow business secretary Chuka Umunna offered help to smaller companies by creating a Small Business Administration, modelled on an organisation in the US, which would give entrepreneurs a bigger voice in policymaking.

David Cameron admitted in a BBC interview that Britain was suffering from poor productivity. He said: “We do need to see improvements in productivity, but frankly I’m glad that the first stages of recovery have been seen in employment.

“If you say to me that all of this takes time, and we have to be patient in delivering our long-term economic plan, and that we are recovering from the longest and deepest recession ... I absolutely agree.

“The key thing is to put in place those things that will deliver sustained recovery: skills for our young people, infrastructure for our country, the support for small business that will deliver the employment, cutting people’s taxes.”

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