An unapologetic backer of the City, Boris Johnson, in the Daily Telegraph out tomorrow, urged George Osborne to cut National Insurance and reduce the 50p tax band. If you believe that we need to boost the economy, and you want to know how, Boris is your man.
In a proper democracy, it is the patriotic duty of every politician to speak out if they believe they have a better solution. The UK economy isn’t goingwell and it’s clear that George can use some help.
The Telegraph reported tonight: “The Mayor of London said a cut in taxes, including the scrapping of the 50p higher income tax rate, was essential to encourage entrepreneurs and “send a signal” that Britain was “open for business”.
His demand came amid growing pressure on George Osborne to develop new policies to boost economic growth. The Daily Telegraph disclosed that there was impatience among No 10 advisers, who wanted the Treasury to be more imaginative in kick-starting the economy. The Chancellor said yesterday that there was underlying growth in the economy and that the Treasury’s tactics had “provided stability in a very unstable world”.
Official figures showed that economic growth between April and June was 0.2 per cent. Over the past year, the economy had risen by just 0.7 per cent —far less than ministers expected.
Mr Johnson is an increasingly outspoken critic of the Coalition and is seen as the main rival to challenge Mr Osborne for the Conservative leadership when Mr Cameron eventually steps down.
“You’ve got to look at ways of stimulating growth now, and certainly I think you should look at National Insurance,” he said. “You should look at ways of stimulating consumption confidence in the market.”
He said the abolition of the 50p rate would be “a signal that London is open for business”. He described London as a “great international competitive capital”, but it was competing against capitals with much lower tax rates.
“That’s the right direction to be going in,” he said.” Read the rest of this article which makes headlines in the DailyTelegraph tomorrow.