City warns on harmful tax policies

BUSINESS leaders yesterday implored the government to consider the long-term effects of tax and spending policies on the future competitiveness of the UK as a global financial powerhouse, in a new report co-authored by the City of London Corporation and business group London First.<br /><br />Baroness Jo Valentine, the chief executive of London First, said London needs to be able to bat on a level playing field and that the UK financial services industry needs to be as strong as possible to stimulate economic recovery.<br /><br />&ldquo;We need to be able to trust the government to implement a tax policy that raises money but also puts businesses in the position they need to be in to stay in the <br /><br />UK,&rdquo; she said. &ldquo;There&rsquo;s no point in going for quick fixes where the government doesn&rsquo;t fully understand the consequences beyond the short term.&rdquo;<br /><br />Valentine said the proposal for a new 50p income tax rate was &ldquo;dubious&rdquo; at best.<br /><br />&ldquo;To me, the upside is very small and the potential downside very large,&rdquo; she said.