50p rate to raise £12.6bn in five years, Treasury figures show
Parliamentary question reveals Treasury's revenue projection for top rate of tax
THE 50p TOP rate of tax will raise an additional £12.6bn over five years, according to the Treasury’s own figures.
By 2015/16, the tax rate on people earning above £150,000 a year will bring in a projected £3.2bn a year more than if the rate stayed at 40%. In all, the rate will have raised at additional £12.6bn over the five years since it was introduced. The figures also show that it will raise an additional £5.3bn compared with a 45% rate.
The figures were calculated in November 2010 and were revealed following a parliamentary question by Lord Ashcroft.
Chancellor George Osborne (pictured) has previously claimed that the tax rate was a temporary measure. However, he has indicated a final decision will be made following a review by HM Revenue & Customs to be completed after the self-assessment deadline in January 2012.
A letter to the Financial Times from 20 leading economists, published yesterday, called on the government to scrap the top rate of tax, claiming it was harming economic growth.