Business, Innovation and Skills Questions: Economic Growth
Andrew Bridgen raises his concerns that a long term imposition of the 50p tax rate will have a detrimental effect on economic growth in the UK by scaring away foreign investors and causing some of our brightest and best business brains to leave the country.
Andrew Bridgen (North West Leicestershire) (Con): Does the Secretary of State agree that although the 50p rate of tax may be necessary in the short term, it will have a detrimental effect on economic growth in the UK in the medium to long term? It scares away foreign investors, acts as a disincentive for home-grown entrepreneurs to start businesses and offers a massive incentive for some of our brightest and best business brains to leave this country and pay less tax elsewhere.
Vince Cable: When I was in opposition I spent quite a lot of political energy arguing against a 50p tax rate. However, in the present context we have to understand that the burdens of the very difficult period through which we are passing have to be shared fairly, and that is why the tax remains in place.