Rifkind - 50p tax rate must stay...for now

I know there to be differences of opinion among my constituents. I myself fall into the second group, at least for the time being.

It shouldn't need to be stressed that the government is faced by a very challenging economic situation.

As is often the case following a period of sharp financial volatility, public spending has increased.

This who lose their job require more assistance from the government, as do younger people who are struggling to find employment.

At the same time, tax receipts have fallen. Fewer people are purchasing goods, resulting in less VAT revenue being paid. Business profits are down, meaning that less is paid to the government in corporation tax.

Lastly, income tax receipts are disappointing, as the UK's workforce is not growing as quickly as expected.

In short, the government, like many of those it represents, has had its income frozen.

Restoring a balance between the amount the government spends and takes in is the current government's priority. To do so, it must cut back on some spending programmes, and increase some taxes.

However, it must always proceed in a way that ensures that the economy as a whole continues to grow. Accordingly, the services to be reduced and the taxes to be raised must be chosen very carefully. The 50-pence tax band has been identified as one such levy.

However, it should only be maintained temporarily.

The income that is taxed is money that would have gone into saving funds. Accordingly, it hinders savers trying to set aside money for their pensions, and businesses listed on the city which rely upon investment in stocks and shares. So, such a policy cannot last forever.

While it would be unfair to eliminate the 50-pence tax band when so many on lower incomes are suffering, it should be removed as soon as the government has restored the economy to health.