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In a letter to the Daily Telegraph, the owners of 537 small and medium-sized businesses, said that “the 50p tax is set to reduce government income and damage the economy, the public services and charitable giving."

The entrepreneurs described the 50p tax rate as “unfair and politically-motivated”, saying that it “puts populist politics before sound economics” and has left “wealth creators” in “a very awkward position”.

 

Tony Stein, Director at Canterbury Care, added that the 50p tax rate is a “disincentive to job creation”. Business owners say there is less incentive to finance new business ventures when their personal income tax is so high.

The Treasury insists the 50p top rate of tax is a temporary measure. Chancellor George Osborne has asked HMRC officials to assess how much revenue it actually brings in.

 

The 50p tax rate is levied on earnings above £150,000 a year.

At this stage a timetable has not been set for any change in policy.