Big squeeze on big earners

A promise by the Labour Party to restore the 50p top rate tax for high earners must be permanent to tackle inequality — and possibly could go higher, says Oldham MP Michael Meacher.

The Oldham West and Royton MP said the move announced by Shadow Chancellor Ed Balls was needed and a majority of people supported the idea.

“If it to restore an element of fairness in our deeply dysfunctional and grotesquely unequal society, it should clearly be a permanent change,” said the MP

Mr Balls hinted the rise would be temporary, but Mr Meacher said a 55 per cent rate shouldn’t be ruled out.

“In an economy in which the very richest 0.1 per cent of the workforce, 30,000 people, now take home more than £1 million a year, it is surely unwise to close off the option that the top rate might have to be raised to 55 per cent.”

Critics accused Labour of a knee-jerk reaction and that it would affect the recovery and put off talented people from coming to invest in the UK.

Mr Meacher added: “It shows their utter coldness towards any idea of fairness — that in austerity a decade long the richest one per cent should contribute a tiny amount to assist those who are struggling or jobless or destitute.”