By Marcus Leach

With the 2011 Budget less than a week away the Institute of Directors (IOD) has urged the Chancellor to get rid of the 50 per cent tax rate for top end earners.

On top of that they have called for George Osborne to reinstate tax-free allowances for the same high earners to rectify the "damaging perception" that the UK is fast becoming a high-tax economy.

The IOD want to see the top-end income tax rate, which affects those earning over £150,000 per annum, abolished by 2015 in a bid to boost tax revenues. Any hope of its immediate removal were dashed due to certain political sensitivities and the current state of the economy.

"By making these statements on Budget Day the Government will be sending a clear message that this country is open for business," Miles Templeman, the IoD's director-general, said.

"We can't afford to make all these tax changes today, but signalling tax cuts for tomorrow could still boost business confidence."