Boris Johnson has told George Osborne before and he is saying it again. Axe the top rate of tax, George! Boris believes that the “job destroying” 50p rate of tax is driving business away from London and the economy is stalling. The logic of the case of removing this punitive, jobs destroying tax is overwhelming, said a spokesman for the Mayor, according to today’s London Standard.
It must be annoying for the government that Boris is always the smartest guy in the room, but the fact remains that many leading economic thinkers agree with him. DeAnne Julius, Chairman of the Chatham House Think Tank believes that keeping the tax is “shooting ourselves in the foot.” Twenty economists signed a letter to the Financial Times calling for the Chancellor to ditch the 50p rate. They believe that many hedge funds have already moved to Switzerland. Ms. Julius said clearly we need to increase the growth strategy of the country. That isn’t happening right now.
On July 26th this year, in his Daily Telegraph article, Boris urged George to cut National Insurance and dump the 50p tax. The Telegraph reported then: “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.”
The Lib Dems of course, don’t agree, but should what any of them think be any sort of consideration when their ideas and policies were firmly rejected by the electorate? They should shut it. They have hardly any seats! They came third! They supported AV and the euro for crying out loud! Anything the Lib Dems want is a must to avoid, isn’t it, the kiss of death to anything remotely bordering on common sense.
George, forget about striking a pose and looking butch. Quit worrying about the challenge from Boris once David Cameron has had enough. The only thing that matters right now is getting the economy moving again, and if you have any sense, you will take the advice of the smartest guy in the room, who has the finest brain in Britain.