Labour's tax plan labelled as 'economic vandalism'

LABOUR’S plans to reinstate the 50p top rate of tax has attracted withering criticism from the business community.

Shadow chancellor Ed Balls claimed the tax hike would generate around £3bn a year and help cut the budget deficit, eliminating it by 2020.

The announcement received widespread condemnation from business leaders, unhappy that an increase in the top rate of tax would discourage enterprise and deter investment in the UK. 

Luke Johnson, founder of Risk Capital Partners, told City A.M. the move was “lousy economics” and “pure politics of envy”. Pimlico Plumbers boss Charlie Mullins echoed Johnson’s sentiment, branding it “desperate”.

“It’s nothing short of economic vandalism”, he told City A.M., while business lobbyists the CBI warned a 50p rate “puts talented people off coming to the UK to invest and create jobs.”

The coalition government has steadily reduced the top rate of tax over the course of its term, leaving the higher rate at 40%, and the additional 45% rate for those earning more than more than £150,000 per annum.

Responding to claims his policy was aimed at attacking business, Balls said Labour is a “pro-business party”. “

“This is not an anti-business agenda, but it’s an anti-business as usual agenda,” he said.