New CBI boss Roger Carr backs 50p tax rate

The president-to-be of the CBI, Roger Carr, has broken ranks to say that he supports the 50p higher tax threshold introduced by the last Labour government. "Those who can make a bigger contribution should do so," he said. "So I do not think the rate is unreasonable."

He made the comment in an interview with the Observer and stressed that it was his personal belief. Even so, it puts him at odds with his new colleagues at the CBI were he takes over as president next June.

A previous president, Martin Broughton, condemned the 50p rate as an act of "economic vandalism" while the body's director general, Richard Lambert, called for an "early commitment" from the coalition government to reverse the new tax band on the grounds that it had "damaged the UK's reputation as a business location".

Carr is chairman of the energy company Centrica, a director of the Bank of England and was chairman of Cadbury until its takeover by Kraft.

Even if his views on taxation are personal, he chose to make them public - and they have gone down well with the CBI's opponents at the TUC. General secretary Brendan Barber said: "It is very refreshing to hear Roger Carr taking a moral stand on the issue. Other senior business people would do well to follow his example."

Read a full report at the Observer. ·