I believe now, more than ever, that it is time to scrap the 50p tax rate to send out a message to the world that Britain can be a hub for entrepreneurship.
The higher tax rate dissuades businesses from setting up in the UK and stifles entrepreneurs by removing some of the income they could use to reinvest in their enterprises. I totally agree with the group of more than 30 City business people who have written to the Chancellor George Osborne calling for the urgent scrapping of the 50 per cent rate. They say that the current turmoil in southern Europe means that the government must take immediate action to boost confidence. If it’s not enough that we have to face the uphill struggle of overcoming the mess left by the last government and the casino-mentality of the banking community, we will be hit by the after-effects of the economic disasters facing Greece and Italy. Like many others, I went along with keeping the 50p tax rate in place as a temporary measure last year, rather than risk the potential of throwing out the baby with the bath water in the aftermath of Gordon Brown’s inept administration. The time is right to bring down the corporate tax rate and the Chancellor has the perfect opportunity to do so in his Pre-Budget Report at the end of this month. It’s a common-sense measure that will create, not destroy, the kind of entrepreneurial spirit that is so important to the government’s plan to recharge and accelerate the UK economy. No long-term good will come from having a higher rate of tax than our major global competitors. We have to start laying the ground now for an environment that will generate optimum business growth. This will attract companies from abroad and encourage those already here to expand on these shores rather than look further afield. Charlie Mullins launched Pimlico Plumbers in 1979 with just a bag of tools and an old van bought at auction. The company now has more than 133 professional plumbers, 35 support staff and a £15m turnover.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
