Ed Balls says he would want lower top rate of tax, contrary to Labour stance

Ed Balls has said that he “personally” would want a lower top rate of income tax, despite this being contrary to Labour’s stance.

The shadow chancellor told the CBI Conference in London today: “Personally as an economist I would always want the top rate of tax to be lower.”

But Balls said that his party had to make the “right decision” on income tax rates during “difficult times”.

His comments came in response to a member of the audience asking how Labour was helping entrepreneurs by refusing to further cut corporation tax rates and taxing higher incomes.

Balls urged his commitment to enterprise in his address.

“Business is part of the solution, not the problem,” he said. But he added that politicians cannot afford to “bury their heads in the sand and ignore the mainstream concerns of people across this country, who think our economy is not working for them and their families”.

Labour was highly critical of the Coalition’s move to cut the top rate of income tax from 50p to 45p earlier this year.

Balls said in his speech today he thought the government made the cut at the “wrong time”.