A recent government opinion survey taken in 2012 showed that just over half of those polled issued their support for retaining the 50p top bracket tax rate, suggesting that the policy will garner significant support from a large portion of the electorate.
The Labour party has denied that their support to reintroduce the 50p income tax on the countryís top earners is part of an ëanti businessí campaign.
Shadow Chancellor Ed Balls has denied the allegations, citing that is it a necessary move on the part of the party to reduce the ëhugeí deficit it will be confronted with should it win the general election next year.
And Mr Balls added that whilst he believed that those who have an annual income of over £150,000 should pay a higher level of taxes, he said that he wanted general taxation to fall over the course of the future.
However, the shadow chancellorís remarks have found little support across the business world, with many remarking that it is fundamentally unfair that hardworking affluent individuals have to part with a significant portion of their salary
just because they earn more.
This sentiment was reiterated by Foreign Secretary William Hague, who remarked that it was sending the ëwrong signalí about the UK, and its business environment.
Same old Labour?
The Labour party previously implemented a new tax bracket for the top earners in the UK back in 2010, just months before they were ousted from parliament.
Back then, a 50% tax bracket for earners was enacted for anyone who earned more than £150,000 a year, though it was swiftly reduced to 45% when the coalition came to power.
And Mr Balls argued that 2010 was too early to have instigated the tax change, saying that it had caused resentment for the policy as its introduction was ill-timed.
The Shadow Chancellor added that the 50p tax rate would only be around until that time that the budget deficit had been removed, which he argued could be achieved by as early as 2020.
“What we are talking about is going to 50p while we get the deficit down,” he said.
“It is a fair way to get the deficit down. The phrase is ‘we are all in it together’ – that is part of the policy.”
Labourís recent policy promises for their 2015 general election campaign has caused uproar in business circles that have cited that a trend of ëanti businessí reforms is starting to develop.
Previously, Labour leader Ed Miliband pledged to clamp down on the conduct of high street banks and attack energy firms head on by forcing them to freeze energy prices for a period of 20 months after the 2015 general election.
However, Mr Balls has said that the Labour party are fully supportive of boosting business across the country, and said that the reforms were part of a series of policies to address the growing budget deficit in the country.
“This is not an anti-business agenda; it is an anti-business as usual agenda.”
He added: “It is absolutely not back to the 1980s and 1990s. The reality is we are in very difficult circumstances and because of George Osborne’s failure in the last few years these difficult circumstances will last well until into the next Parliament.”
The shadow chancellor argued that a considerable level of finance could be acquired through the implementation of the new tax bracket, though many coalition ministers have rebuked this claim.
Lord Digby Jones, a former trade minister, criticised Labourís proposals as a show of poor economics that penalised those who had worked hard for their income.
Anti business, anti job creation agenda
Despite Labour insisting that their policy proposals are not part of an anti business campaign, many Conservatives have argued that this is untrue and has called for workers in the UK to resist the allure of the campaign and retain faith in the current administrationís economic policies.
Foreign secretary William Hague said: “The long-term economic plan of this government is working,î
“Ed Balls is sending the signal that if there is a Labour government we will go back to high taxing, high spending and high borrowing.”
Xavier Rolet, chief executive of the London Stock Exchange Group, said: “I think there will be an impact. I think fiscal policy sends a powerful message and has a powerful impact on investment decisions.”