Labour tax plans
[Re: The Labour party’s war on the better off is dreadful economics, yesterday]
Let us not forget the damage that the 50p tax rate would do to the global mobility of top talent. Many of these individuals are “tax equalised” – their net salary is delivered, and the employer meets the tax liability so that they are no worse off as a result of their work location. Ed Balls’s proposal will increase the basic tax rate employers have to pay to attract these individuals, and that is without the added burden of National Insurance contributions. Do we want to attract top talent to the UK or not?
[Re: Ignore the rhetoric: Government must open up contracts to small business, yesterday]
Lord Adonis is right that the public sector needs to improve its commercial relationship with small companies. But he fails to note the progress this government has made, and makes some glaring errors. We’ve set a target of 25 per cent spend with SMEs. My department’s direct spend was 28.3 per cent at the last count, not 2.5 per cent as reported. Lord Adonis suggests no senior official is responsible for enterprise. The director for enterprise, with her team of 94 staff, would beg to differ.
Vince Cable, secretary of state for Business, Innovation and Skills
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Top 1 per cent of earners already paying “fair share”. Will pay about 30 per cent of income tax in 2013-14.
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Reforms to regulation for small business will save more than £850m a year.
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