Tax experts react to 50% IT rate

Miles Templeman director general Institute of Directors

The increase... sends out all the wrong signals. It will have a damaging impact on the wider economy and undermine the UK’s attractiveness as a place to invest. We are also worried about the ‘slippery slope’ whereby the 50% rate becomes payable on successively lower incomes in the future.

Carolyn Steppler associated partner KPMG

From 2010 the UK will have the highest income tax rate among the largest western economies. If they are losing half of their top end earnings entrepreneurs foreign workers and anyone else who can choose where they work are likely to think twice before making the UK their base.

That said with many people likely to see lower incomes this year due to the relative paucity of City bonuses this measure may prove to be an unattractive headline grabber that...