Calls to cut 50p tax rate

HUNDREDS of business owners and entrepreneurs have called on the chancellor to scrap the 50p tax rate in his Budget this month, claiming the levy is an “unfair, politically motivated tax”.

The business owners and directors said the top rate introduced by Labour is “penalising high earners” and cutting it would “contribute to the government’s growth agenda”, in a letter to the Telegraph.

But the Labour Party defended the tax rate last night, saying the current economic climate means it is the wrong time to cut tax for the top earners.

“But these business owners are right to call on the government to take action to stimulate growth and jobs in our economy,” added shadow chief secretary to the Treasury, Rachel Reeves.

George Osborne is due to deliver his 2012 Budget on 21 March.