Budget whispers

March 17, 2011 5:31 PM

Jo Johnson writes in today's Financial Times (£) about the disaster of high taxes in the United Kingdom. He points to a KPMG survey that showed the UK has the 4th highest top rate of income tax of 86 countries - beaten only by Sweden, Denmark and the Netherlands. Johnson also mentions a World Economic Global Competitiveness Report - which looks at the tax system to assess incentives to work and invest - that placed the UK 95th out of 135 countries. Our tax system hinders competitiveness.

Interestingly, he notes that Sir Nicholas Macpherson, permanent secretary to the Treasury, disclosed that 63,000 out of 275,000 taxpayers liable for the top rate work in "financial intermediation" in a letter to the Public Accounts Committee. Many of the others, Johnson notes, are entrepreneurs we need to create jobs and help drive the recovery. Unsurprisingly, numbers from the Treasury finally confirm the tax politically deployed to sate public anger of 'bankers' is misguided.

Benedict Brogan at the Telegraph notes that George Osborne might "put down a marker" on the 50p rate at the Budget next week. It should make for interesting viewing.

Latest Blogs:

TaxPayers' Alliance Icon

Get nanny out of the nursery

12:00 PM 20, Oct 2017 Ben Ramanauskas

TaxPayers' Alliance Icon

Magna Carta - A Very English Tax Revolt

9:09 AM 26, Sep 2017 Daniel Pryor

TaxPayers' Alliance Icon

Who will defend the defenders?

12:03 PM 20, Sep 2017 Duncan Simpson

TaxPayers' Alliance Icon

What’s wrong with the all-ages graduate tax?

6:09 PM 18, Sep 2017 Jan Zeber

TaxPayers' Alliance Icon

Should taxpayers fund Zumba, facials and spas for the NHS?

4:02 PM 18, Sep 2017 Ben Ramanauskas