CBI argues top-rate tax is damaging to UK entrepreneurs

Date: 21st May 2009

The Confederation of British Industry has warned that the new 50p top-rate of income tax could severely hinder the nation's entrepreneurial class.

Speaking at the organisation's annual dinner in London, outgoing president Martin Broughton argued that putting up the top rate of income tax was tantamount to "economic vandalism" and, far from helping to rebuild the economy, would do little to help small businesses and entrepreneurs.

Speaking to delegates, including prime minister Gordon Brown, he said: "Tearing up the manifesto commitment to the country's entrepreneurial class - the major job creators - was nothing short of economic vandalism.

"What's more - the tax take is likely to be minimal," he added.

On a more positive note, Mr Broughton expressed his belief that the current economic crisis could help bring together world businesses and usher in a new wave of cooperation between entrepreneurs across the world.

These comments follow on from the CBI's warm reception of the latest minimum wage increases, with deputy director general John Cridland stating that the 'moderate' rises reflect the reality that many small businesses are currently struggling.