The conflict over 50p has escalated once again

Just like fuel duty, George Osborne can’t shake off the fury and discontent over the 50p tax rate. This morning, in a letter to the Telegraph, 537 bosses of small-to-medium-size businesses have called on the Chancellor to drop the rate. ‘The tax, which is in effect a 58p tax after national insurance is taken into account,’ they note, ‘puts wealth creators like us in a very awkward position.’
 
Usually, it’s easy to be both sceptical and dismissive of these mass-signed letters. They tend to be party political constructs, such that another group of ‘experts’ will soon reply to profess the opposite. But this one is different, and could help cast the whole battle over 50p in a fresh light. This isn’t bankers or the mega-rich complaining about high taxes, but everyday entrepreneurs and SME owners — and few parties want to make an enemy of them. Hence why even Labour are responding