George Osborne should “accelerate” plans to scrap the 50p higher rate of income tax and increase personal tax allowances to help the economy during the euro crisis, business leaders will warn the Chancellor.

In a letter to the Chancellor, more than 30 of the City’s top figures agree that the “current turmoil in southern Europe” means that the Government must take “immediate actions” to boost confidence. They call for the immediate scrapping of the 50p rate to attract entrepreneurs to Britain and a £1,000 increase in the tax-free personal allowance.

The plea comes after an official forecast from the European Union estimated that the single currency crisis would cost the British economy more than £37billion — equivalent to almost £1,500 per household — and threatened to push this country back into recession.

In their letter, published in The Daily Telegraph today, the business leaders urge the Chancellor to increase spending on infrastructure projects and to overhaul tax policy.

“We would encourage an acceleration of the Government’s commitments on two areas of tax policy: increasing the personal allowance and restoring 40 per cent as the top rate of income tax.

“An early removal of the temporary 50 per cent tax rate would attract wealth generators to the UK and support the entrepreneurs we need to help us grow the economy and provide jobs.


Debt crisis: 'axe the 50p tax rate now to save the economy' - Telegraph