SIR – With reports of some welcome economic growth making nonsense of the Shadow Chancellor’s dire predictions, isn’t it now time for traditional Tory policy of tax cuts to be implemented?

Although across the board reductions in either Fuel Duty or VAT might be too ambitious, the plight of more and more people like police officers, teachers, engineers, etc, being dragged into higher rate tax of 40 per cent should not be ignored, as it only takes a modest pay rise or slight change in the PAYE Personal Allowance to increase their tax burden by 100 per cent.

Compare that to the increase in earnings of £100,000 per annum needed to go from Higher Rate to Top Rate Tax of just 45 per cent then the injustice involved becomes clear.

Surely it is not beyond the wit of George Osborne to recognise the vital contribution these groups of ‘middle’ earners make and institute say a medium rate tax of 30 per cent on earnings of over £40,000 up to £60,000.

The other area overlooked must be Savings Interest Tax at 20 per cent, a terrible burden on savers, especially OAPs. When Labour doubled the Income Tax on low paid and retired by abolishing the ten pence band to pay for the two per cent reduction in Standard Rate Tax, there was NO corresponding reduction in Savings Tax which had been two per cent lower. A new rate of 18 per cent would help a lot of people who struggle to get a ‘positive’ return on savings, ie, excluding Inflation and Tax, with most ISAs paying similar derisory interest.

D S Boyes, Rodley Lane, Leeds