UK business leaders call for tax cuts; government unlikely to oblige

A group of over 30 leading UK businessmen on Friday urged Chancellor George Osborne to accelerate plans to scrap the recently-enhanced 50p top rate of income tax as one of a series of immediate measures they recommended to protect Britain's economy from the euro zone crisis fallout.

The group includes Sir chairman of the airports operator BAA Nigel Rudd, chief executive of British Land Chris Grigg, chairman of real estate major the Berkeley Group Tony Pidgley, chairman of Prudential Harvey McGrath and chairman of PriceWaterhouseCoopers Ian Powell.

In a letter to the Daily Telegraph, they also suggested increasing the tax-free personal allowance by £1,000, more than planned for next year. These steps would have a "disproportionately positive impact" on stimulating growth, the group said.

The leading city figures also called for increased spending on infrastructure projects to help boost Britain's ailing economy.

The plea comes after an official forecast from the European Union estimated that the single currency crisis would cost the British economy more than £37billion - equivalent to almost £1,500 per household - and threatens to push the country back into recession.

While many in Conservatives are largely in favour of early scrapping of the 50 per cent tax rate on those earning £250,000 or more a year and reverting to the 40 per cent rate, the Liberal Democrats strongly oppose the move, and are in fact demanding further taxes on the wealthy.